It's no secret that I follow a lot of what Elon's companys do (and for the first time, actually following along with anything other than technology), but I try to stay pretty objective and unbiased. The securities thing is a really strange topic. His statement about taking Tesla private definitely seemed fradulent and caused a market reaction because the deal wasn't signed. Seemed like he learned his lesson and waited to announce the Twitter deal until the agreements had been made.
But there have been many other times that people have claimed fraud based on his tweets and such that brings up a moral conflict for me. He has become so well recognized, that simply stating an opinion on just about anything influences markets. So literally by having an opinion, markets get manipulated/influenced.
He deserves his opinion and a platform to speak freely
People invested the stock market deserve protection from manipulation/fraud
What's the resolution?
Also, I'm not up to speed. Besides the side effects of the current chaos, what's causing the bottom to fall out of TSLA stock in the coming months?
He had no financing in place to take the company private when he made that tweet, he had at best some speculative interest. He was squeezing (or breaking) the short sellers with that tweet, and it was fabricated entirely to do that, there was nothing else to it. The company at that point was already massively overvalued, and was rightfully being shorted. Since he basically got a slap on the wrist for it, there was a clear message, if you short TSLA you are not going to be in a fair fight. This really helped the stock price to continue to grow massively to absolutely ridiculously unsupported "valuations." This was fraud through and through as it was entirely to his own financial advantage. There is clear (and I mean clear) rules about board members/executives making statements about company activities for these exact reasons, and he knew them and broke them willingly on the basis that he's smart enough to know he wouldn't pay a significant price for doing so.
His crypto manipulation just makes me laugh. Idiots getting played by him because they worship him as an idol. I'm not totally sure about the legalities of this, as really the only issue was that TSLA was holding (and then selling) some of these assets during this, but I suspect he was legally (not ethically) in the clear on this.
The bottom will fall out of TSLA for a simple reason. It isn't worth anywhere near its current "valuation" in any way. In order for it to be worth what it currently is "valued" at, it would have to completely displace GM, Toyota, Ford, and probably FCA. At its peak it would have had to completely displace ALL of the current car companies. By displace I mean take the entirety of their sales. This is simply not possible, unless you fanboi real fucking hard and ignore all facts and logic. There will still be a market for ICE consumer vehicles for another decade, even if dwindling, and every manufacturer has some sort of EV (or a bunch) in the works or currently selling (and selling all of them they can make). The battery electric long haul semi-truck concept is neither viable now, nor will it be for at least another few generations of batteries, and it may never be (hydrogen, synthetic fuels, or carbon capture may be the long term solutions, or even tram/trolly power combined battery town/local trucks). There also is limited value in TSLA's IP, as guess what, building an electric car is not really that hard using mostly off the shelf hardware now. This is also very damning for the semi-truck. Full self driving also has taken much longer to implement, and is only a few high profile incidents away from being mired in regulatory hell for decades to come, so again there is very limited value there.
The reason the stock price had not corrected sooner was because every Tom, Dick, and Harry was throwing everything they had at the stock market since everything had done nothing but go up, plus the added risk of shorting TSLA since you won't get a fair chance. I didn't short it because of this, but now there's some big names/money that are doing it as they know the wind is out of the sales.
Realistically it's worth about $80-120/share.
Don't take anything I say as financial advice as I am not and financial analyst, and I literally get paid to pump fuel.