Wow, Much Investigate
Of course this isn't the first time that Musk's tweets have gotten him in trouble with the SEC. The last time was in 2018 after he tweeted:
This caused $TSLA shares to jump as high as 13.3% that day, finishing up over 6%. Now, I know that those numbers aren't sexy these days, but it's still a serious no-no. You just can't be out there tweeting about your publicly traded company thinking about going privately like that all willy-nilly. Plus it was all bullshit. Musk said "funding secured" but in reality, there was no financing in place and the plan was in its early stages at best. Musk and Tesla eventually settled and did not have to admit nor deny SEC allegations. But there were some strings attached:
Whether or not Musk has complied with number 3 on that list is open to interpretation, but he definitely made it known how he feels about the whole situation and the SEC:
This time around it has nothing to do with Tesla, but it's still his Twitter-fingers getting him in trouble. All month Musk has been tweeting his support for Dogecoin, the meme-inspired cryptocurrency. It's non-stop and honestly annoying:
Think Elon likes doge? This fucking guy man.
I can live with the old $TSLA tweets from 2018, even though I strongly disagree with his actions. It's easier for me to accept that one because back then, he wasn't quite as popular as he is now and Twitter, though big, wasn't so big that it could stand up to a sitting president.
But since then Twitter's reach has grown significantly - 126M daily active users in Q3 2018 vs 192M in Q4 2020, or 52%. Musk's popularity and power have grown even more than Twitter's - 22M followers at the time of the Tweet vs. 43M today. His cult-like followers will do anything he says, and he knows it. You combine Twitter's platform, Musk's power, the recent surge in retail trading that resulted from the pandemic, and fucking dogecoin and you've got a recipe for disaster.
I'm personally glad the SEC is going to investigate Musk over all of this because I see his actions as wildly irresponsible. When you're in a position like his, you should hold yourself to a higher standard. Since Musk won't, looks like the SEC will try to force him, but ultimately this is going to amount to zilch. He's just got too many simps to be brought down by anyone.
I at least expect Musk will lay low for a while, maybe stay off Twitter entirely for a bit. Though the last time he tried that it lasted less than 48 hours, so we'll see.