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1/ Here is my quick take on the SEC contempt filing against Musk. It is a very big deal that the SEC took this step. After letting Musk off easy, and giving him a second chance, they clearly recognize that he is pissing all over them. $TSLA.
2/ This is going to take a while to play out. Musk and Tesla will need to make a filing; there will be a hearing. The judge will need to take time to decide. This is going to be a big overhang on the stock and make it very difficult to raise capital any time soon.
3/ The SEC's filing is simple and surgical (like the original case). There is no indication that the SEC is investigating this more broadly yet (e.g., Denholm appointment, but defer Chairman duties to Musk for 6 months.) The SEC focuses solely on the one tweet.
4/ Any competent counsel would tell the independent directors that they are personally at great risk of civil/SEC liability. They should strongly consider firing Musk to make peace with the SEC. This is a cult, though, so they may try to close ranks again.
5/ I think the chances are very high that the judge will rule in favor of the SEC. It will be interesting to see what remedy is considered/chosen. Big fine? Officer/Director ban? Hard to envision the judge going easy on Musk.
