Is Elon Musk too big to flail?
John Goreham's picture

Is Tesla's Elon Musk Betting He Is Too Big To Flail?

Elon Musk is due for an SEC beat down. If the green vehicle world's biggest narcissist asking for it, or does he think he is untouchable?
Advertisement


Think your friends would be interested? Share this story!

Elon Musk has a low opinion of the SEC and isn't afraid to say so. In fact, he seems to look for opportunities to poke the U.S. equities regulator in the eye at every opportunity. Musk has recently pushed the SEC so far the regulator has asked a judge to hold him in contempt for breaking a deal he made. As a bazillionaire investor, bringing the "eye of Sauron" to bear on one's self seems pretty dumb. But Musk isn't dumb. Maybe he has another strategy we have not considered.

Maybe Elon Musk thinks that the SEC is powerless to harm him. There may be an interesting angle here. One possible spanking the SEC and judiciary could employ would be financial. In other words, they could sting Musk with a fine. He could shrug off a fine of millions if he so chose. Heck, he could even start a fund online to recoup the fine and his legions of fans may revel in bailing him out.

The SEC and Judiciary could also try to remove Musk from Tesla. This is sort of a stretch, but it may be something that exists as a possibility. The problem with that is the SEC would be throwing the baby out with the bathwater. Without Musk, Tesla is another car company that doesn't make money. We sure have plenty of those kicking around and investors without Musk in the scene would be looking at different kettle of fish. Tearing out the underlying roots of what Tesla has grown into seems like a bad move for investors. The SEC's primary role is to protect investors, so harming them for their own good may not be something Musk fears is a real possibility.

The SEC could also bar Musk from being an executive at public companies. Musk is young among oligarchs in general. He may not be thrilled to be a liability to companies that rely on publically traded equities this early in his career. This option seems a bit over the top to actually consider. Particularly since Mr. Musk launches satellites into space for the government that holds the reigns of the SEC.

Elon Musk is a person of unusual intellect. He may have some bad habits and he may well be an uncontrolled social media addict, but it is hard to imagine him being so dumb as to kick over the campfire while surrounded by brush. Yet, here we are.


Sign-up to our email newsletter for daily perspectives on car design, trends, events and news, not found elsewhere.