Elon Musk doesn’t play by the rules, and the Fat Cats are trying every strategy in their ancient playbook to capitalize on the success of his brands. From FAA red tape at Starbase to FTC accusations of Securities Fraud, let’s see how Wall Street pleads their case.
Back in 2018, Mr. Musk threatened to take Tesla private. Along with speculation into cryptocurrency, it prompted the SEC to slap him with a $20 Million fine. He said the notoriety was worth it to make light of how the American financial system favors the good ol’ boys.
Meanwhile, the FAA is having fun scrutinizing every aspect of Starship and its Super-Heavy launcher. Their statement of September 17th reiterates that a launch license can’t be granted because the big program falls outside of their 2014 Environmental Impact Statement.
Photo: CNBC
Shots Fired!
It seems as if the media is also having a field day with the debacle over the repeal of Full Self-Driving. My father in-law has been a Beta tester at every opportunity, and his Model X has done every task in a flawless manner. Nevertheless, CNN says Tesla owners now fear their cars. Taking the initiative to jump on the bandwagon, the nation’s most powerful banking institution filed a suit in NYC late Monday afternoon. Reuters says their gripe stems from the stock price back in 2018. They had negotiated an option to buy Tesla stock if the price dropped to a certain level.
They were betting on Tesla’s price to drop so they could purchase a chunk while it was affordable. But they apparently complain that the price wasn’t fixed, and that Tesla owes them $162 million in damages related to this supposed lost opportunity. Instead of investing in the company, JPM was betting on the price to drop. Instead, it doubled ten times by the time the purchase warrants had expired. Before this lawsuit is dragged into years of litigation, perhaps it could set a precedent for other entrepreneurs.
Photo: Bloomberg
Americans are tired of being squeezed. Big banks would have us rent a shoebox for $1,400 then offer us a mortgage for $700 a month. Here in North Florida, 93 octane is $4.30 per gallon, and half a cart of groceries is a solid Ben Franklin. If Tesla modeled itself like the big automakers, the cost of this suit would be amortized in raising prices to the consumer. Instead, the boss will likely use this as a great opportunity to point out the cronyism that exists between the power players.
Henry Ford lost his first two companies to predatory banks, so he vowed to never go public again. Later in life, his friends allowed him a peek behind the curtains. After witnessing how financiers and the Federal Reserve throttle our economy he said: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
During the crisis of 1907, J.P. Morgan locked the nation’s powerful bankers in the parlor of his house in Jekyll Island, Georgia. It was there that our financial future was laid out. Times have changed, and it seems that the bank that bears his name has resorted to unscrupulous antics to make money, and we’re hardly surprised.
Entrepreneurs need not lose hope, because the reign of the dinosaurs is coming to an end. Crypto has taught us all that Wall Street is grasping for relevance, so imagine what their friend in Big Oil will do when Americans fully embrace electric commuting. The future looks bright to us!
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