The 7 most eyebrow-raising details in the Elon Musk fraud complaintKirsten Korosec / TechCrunch - 2 years ago
  1. The fund’s interest in Tesla – Musk met with representatives of a sovereign investment fund (Saudi Arabia’s sovereign wealth fund) three or four times beginning in January 2017.
  2. The tweet was not some whim – Some have speculated that Musk’s August 7 tweet was just a silly impulse, particularly because the proposed shared price was a reference to marijuana.
  3. The $420 share price – According to the complaint, Musk calculated the $420 price per share based on a 20 percent premium over that day’s closing share price because he thought 20 percent was a “standard premium” in going-private transactions.
  4. A 50-50 chance – Musk’s August 7 tweet indicated that funding had been secured. The complaint lays out a much different account.
  5. Permission granted, request ignored – He told the board he wanted to contact existing shareholders to assess their interest in participating in a going-private transaction, the complaint said.
  6. An unprecedented transaction structure – During his conversation with a private equity fund partner, who had previous experience with such transactions, Musk said the number of Tesla shareholders needed to be below 300, according to the complaint.
  7. Is it legit? –  Musk’s August 7 tweet triggered a maelstrom of calls, emails and texts from the board, executive staff, analysts and press. Confusion was the theme early on.