The SEC is suing Elon Musk and seeking to bar him from running Tesla or any other public company. It all stems from his tweet last month about wanting to take Tesla private at $420 a share.
Among the most stunning details to emerge over the past 18 hours:
He didn't actually have the funding secured. This is the key point of the lawsuit. Although he famously claimed to have funding secured for a buyout, the SEC writes, "Musk knew that he had never discussed a going-private transaction at $420 per share with any potential funding source."
A settlement deal fell apart. The two sides were close to a settlement, but Musk's lawyers pulled out of the arrangement yesterday morning. The SEC promptly wrote and filed its 23-page complaint.
He chose the $420 figure as a joke. If you believed the leaked texts between Musk's girlfriend Grimes and rapper Azealia Banks, you knew this last month. Now, it's official. The SEC complaint: "Musk stated that he rounded the price up to $420 because he had recently learned about the number's significance in marijuana culture and thought his girlfriend 'would find it funny.'"
"This unjustified action by the SEC leaves me deeply saddened and disappointed," Musk responded in a statement. At this point, his tweets--his tweets!--have embroiled him and his company in lawsuits and potentially cost Tesla billions.
Here's what else is worth reading this morning:
National Coffee Day
Our nation's most caffeinated pseudo-holiday is Saturday, and coffee lovers have plenty of reason to celebrate. So do startups in the coffee industry: By the end of 2018, investors are expected to have poured more than $1 billion into everything from coffee houses to ready-to-drink refrigerated coffee containers.--Emily Canal, Inc.com
Where did you watch the Kavanaugh hearings?
As millions of Americans watched, one group of business owners sensed opportunity: bars and taverns that opened early and saw booming business. (I checked in last night with Shaw's Tavern in D.C. which offered drink specials all day. "Yeah, it worked out pretty well for us," a manager said.)--Vildana Hajric, Liz Capo McCormick, Mario Parker, Bloomberg News (paywall)
You're going to love this story (unless you're a telemarketer)
Two alleged telemarketing scofflaws have been fined nearly $120 million by the FCC. Combined, they reportedly made over 23 million illegal calls between 2016 and 2017. This comes after an independent study predicted nearly half of Americans' incoming phone calls next year will be spam or scams.--Bill Murphy Jr., Inc.com
$1,800 a month for a 98 square-foot apartment. Seriously.
If you could convince someone to rent one, you'd make an amazing $220 a square foot per year. That's the deal Millennial-focused housing startups like Ollie are offering, by throwing in maid service, toiletries, and a "community," which apparently means sharing the kitchen with other tenants.--Christopher Mims, The Wall Street Journal
'Mate, what just happened?'
Want some water-cooler conversation fodder? Watch this viral video in which a seal in New Zealand jumped high up out of the water and slapped an intruding kayaker in the face with an octopus. Extra points if you can turn this into a Halloween costume and wear it to a company event next month.--Tom Flanagan, Yahoo