Elon Musk During 60 Minutes Interview: “I don’t trust the SEC”

Love him or hate him, billionaire entrepreneur Elon Musk, makes the news a lot for one reason or another. This time, he is publicly announcing his opinion of the Securities and Exchange Commission (SEC) as well as addressing recent labor complaints for Tesla and his recent replacement for chairman of the board at the company.

What was most telling at the interview with 60 minutes is how Musk chose to address his antagonistic use of Twitter that has cost him the chairman spot during a settlement with the US SEC. Some have claimed that Musk is “peculiar” and “eccentric” in his public dealings on Twitter. He claims that he has not censored his tweets since reaching the settlement with the SEC and it doesn’t appear that he plans to in the future, either.

“The only tweets that would have to be reviewed is if a tweet had a probability of causing a movement in the stock,” Elon Musk told Leslie Stahl of 60 Minutes during the interview. “I want to be clear… I do not respect the SEC. I do not respect them.” Sounds like Musk may continue to push their buttons in the near future if his recent behavior is any indication!

Why So Upset?

What actually happened that caused Musk to be so upset with the SEC?

Three reasons:

1. He was accused of making “false and misleading tweets” by the SEC
2. During the settlement, he was required to step down as chairman of his own company!
3. And, to top it off, he was penalized $40 million

https://twitter.com/elonmusk/status/1026872652290379776

That tweet is what started the investigation into Musk by the SEC because Tesla stock jumped rapidly after the impromptu announcement via Twitter and a blog post authored by Musk himself then published on the company website. In his own defense, he explained that he did intend to take the company private and was confident in that price for the stock was more than achievable as he had been in negotiations with a Saudi Arabian wealth fund about the endeavor.

The intention of trying to make the company private was to shield his company from short-sellers and preserve the integrity of the values of Tesla that the business was founded on.

Plug for Decentralization

Should the SEC be able to choose who runs the business that you have started? In America, people start businesses for many reasons, not just to make money. Elon Musk is an innovator that excels at creating new ideas and businesses purely because he likes doing it.

Decentralization means that no one government or entity controls governance over a business or blockchain. Maybe Musk should look at decentralization for future business endeavors if he wants to be able to say what he wants via social media. Social media is a tricky realm because if you agree with everyone no one pays attention to you but if you make too much noise you are crucified in the court of public opinion.

What are your thoughts on Elon Musk, his public demeanor, and his future with Tesla and other entrepreneurial ventures? Would love to hear your thoughts!

Jeff