It's pretty fair to say that Elon Musk is having himself quite a summer. And if you thought that June was fun, what with the crazy self-merger and Brogan BamBrogan and self-driving car crashes, you're not gonna believe what's on tap for July!
The Securities and Exchange Commission is investigating whether Tesla Motors Inc. breached securities laws by failing to disclose a fatal crash in May involving an electric car that was driving itself, a person familiar with the matter said, heightening scrutiny of how the Silicon Valley company handled the information.
Because nothing says "I'm not a cartoonish Super Villain" like "Maybe I didn't do enough paperwork when my robot super-car killed that guy."
Tesla alerted the National Highway Traffic Safety Administration, the U.S. car-safety regulator, to the crash and investigated to determine whether the car was using the company’s Autopilot system, which lets cars drive themselves under certain circumstances. But Tesla didn’t disclose the crash to investors in a securities filing.
And that kind of "oopsy" is maybe a little more troubling to Tesla shareholders considering that Elon is also putting them on the hook in his attempt to get Tesla to acquire his Solar City concern at what will surely come as a major shock to the system for the stock price of the former.
The SEC is scrutinizing whether Tesla should have disclosed the accident as a “material” event, or a development a reasonable investor would consider important, according to a person familiar with the matter. The SEC’s inquiry is in a very early stage and may not lead to any enforcement action by regulators, the person familiar added.
Regardless of what comes of it or not, we are just crossing our fingers that there will be a recording of Elon Musk - the man who has made billions upon billions of dollars by removing oversight from payments, cars, energy and space exploration - sitting down with government regulators to "explain himself."