With so much demand, carmakers have little reason to target budget-minded buyers. Economy car stalwarts like Toyota and Honda are not yet selling significant numbers of all-electric models in the United States. Scarcity has been good for Ford, Mercedes-Benz and other carmakers that are selling fewer cars than before the pandemic but recording fat profits.

Automakers are “not giving any more discounts because demand is higher than the supply,” said Axel Schmidt, a senior managing director at Accenture who oversees the consulting firm’s automotive division. “The general trend currently is no one is interested in low prices.”

Advertised prices for electric vehicles tend to start around $40,000, not including a federal tax credit of $7,500. Good luck finding an electric car at that semi-affordable price.

Ford has stopped taking orders for Lightning electric pickups, with an advertised starting price of about $40,000, because it can’t make them fast enough. Hyundai advertises that its electric Ioniq 5 starts at about $40,000. But the cheapest models available from dealers in the New York area, based on a search of the company’s website, were around $49,000 before taxes.

Tesla’s Model 3, which the company began producing in 2017, was supposed to be an electric car for average folks, with a base price of $35,000. But Tesla has since raised the price for the cheapest version to $47,000.

pass the House, would give buyers of used cars a tax credit of up to $4,000. The used-car market is twice the size of the new-car market and is where most people get their rides.

But the tax credit for used cars would apply only to those sold for $25,000 or less. Less than 20 percent of used electric vehicles fit that category, said Scott Case, chief executive of Recurrent, a research firm focused on the used-vehicle market.

The supply of secondhand vehicles will grow over time, Mr. Case said. He noted that the Model 3, which has sold more than any other electric car, became widely available only in 2018. New-car buyers typically keep their vehicles three or four years before trading them in.

SAIC’s MG unit sells an electric S.U.V. in Europe for about $31,000 before incentives.

New battery designs offer hope for cheaper electric cars but will take years to appear in lower-priced models. Predictably, next-generation batteries that charge faster and go farther are likely to appear first in luxury cars, like those from Porsche and Mercedes.

Companies working on these advanced technologies argue that they will ultimately reduce costs for everyone by packing more energy into smaller packages. A smaller battery saves weight and cuts the cost of cooling systems, brakes and other components because they can be designed for a lighter car.

You can actually decrease everything else,” said Justin Mirro, chief executive of Kensington Capital Acquisition, which helped the battery maker QuantumScape go public and is preparing a stock market listing for the fledgling battery maker Amprius Technologies. “It just has this multiplier effect.”

$45 million in grants to firms or researchers working on batteries that, among other things, would last longer, to create a bigger supply of used vehicles.

“We also need cheaper batteries, and batteries that charge faster and work better in the winter,” said Halle Cheeseman, a program director who focuses on batteries at the Advanced Research Projects Agency-Energy, part of the Department of Energy.

Gene Berdichevsky, chief executive of Sila Nanotechnologies, a California company working on next-generation battery technology, argues that prices are following a curve like the one solar cells did. Prices for solar panels ticked up when demand began to take off, but soon resumed a steady decline.

The first car to use Sila’s technology will be a Mercedes luxury S.U.V. But Mr. Berdichevsky said: “I’m not in this to make toys for the rich. I’m here to make all cars go electric.” 

A few manufacturers offer cars aimed at the less wealthy. A Chevrolet Bolt, a utilitarian hatchback, lists for $25,600 before incentives. Volkswagen said this month that the entry-level version of its 2023 ID.4 electric sport utility vehicle, which the German carmaker has begun manufacturing at its factory in Chattanooga, Tenn., will start at $37,500, or around $30,000 if it qualifies for the federal tax credit.

Then there is the Wuling Hongguang Mini EV, produced in China by a joint venture of General Motors and the Chinese automakers SAIC and Wuling. The car reportedly outsells the Tesla Model 3 in China. While the $4,500 price tag is unbeatable, it is unlikely that many Americans would buy a car with a top speed of barely 60 miles per hour and a range slightly over 100 miles. There is no sign that the car will be exported to the United States.

Eventually, Ms. Bailo of the Center for Automotive Research said, carmakers will run out of well-heeled buyers and aim at the other 95 percent.

“They listen to their customers,” she said. “Eventually that demand from high-income earners is going to abate.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Tesla sets Aug 25 as trading day for three-for-one split shares

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

The logo of car manufacturer Tesla is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann

Register now for FREE unlimited access to Reuters.com

Aug 5 (Reuters) – Tesla Inc (TSLA.O) said on Friday trading in its three-for-one split shares will start on Aug. 25, after the electric vehicle maker’s shareholders approved the proposal during its annual meeting.

Shareholders of the EV maker voted for board recommendations on most issues at the company’s annual meeting on Thursday, including re-electing directors, approving a stock split, while rejecting proposals focused on environment and governance.

Chief Executive Elon Musk owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year.

Register now for FREE unlimited access to Reuters.com

Each stockholder of record on Aug. 17 will get a dividend of two additional shares for each share held, to be distributed after close of trading on Aug. 24, the company said.

The new share split comes two years after a five-for-one split helped bring down the price of the high-flying stock within the reach of ordinary investors.

While a split does not affect a company’s fundamentals, it could buoy the share price by making it easier for a wider range of investors to own the stock.

Tesla shares, which debuted at $17 apiece in 2010, rose to more than $1,200 late year after the 2020 stock split, taking the company’s market capitalization above $1 trillion.

Tesla shares, which ended 6.6% lower on Friday, are down about 18% this year.

At the Thursday meeting, shareholders narrowly approved an advisory proposal that would increase investors’ ability to nominate directors, with 339.2 million votes for the proposal and nearly 319 million votes against it.

Shareholder proposal asking Tesla to report its efforts in preventing racial discrimination and sexual harassment annually was rejected, with 350.7 million votes against it versus 310 million votes for the proposal. read more

Register now for FREE unlimited access to Reuters.com

Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

The Elon Musk-Twitter Saga Now Moves to the Courts

Now that Elon Musk has signaled his intent to walk away from his $44 billion offer to buy Twitter, the fate of the influential social media network will be determined by what may be an epic court battle, involving months of expensive litigation and high-stakes negotiations by elite lawyers on both sides.

The question is whether Mr. Musk will be legally compelled to stick with his agreed-upon acquisition or be allowed to back out, possibly by paying a 10-figure penalty.

Most legal experts say Twitter has the upper hand, in part because Mr. Musk attached few strings to his agreement to buy the company, and the company is determined to force the deal through.

inauthentic accounts. He also said that Mr. Musk did not believe the metrics that Twitter has publicly disclosed about how many of its users were fake.

Twitter’s board responded by saying it intended to consummate the acquisition and would sue Mr. Musk in a Delaware chancery court to force him to do so.

At the heart of the dispute are the terms of the merger agreement that Mr. Musk reached with Twitter in April. His contract with Twitter allows him to break off his deal by paying a $1 billion fee, but only under specific circumstances such as losing debt financing. The agreement also requires Twitter to provide data that Mr. Musk may require to complete the transaction.

Mr. Musk has demanded that Twitter give a detailed accounting of the spam on its platform. Throughout June, lawyers for Mr. Musk and Twitter have wrangled over how much data to share to satisfy Mr. Musk’s inquiries.

as they face advertising pressure, global economic upheaval and rising inflation. Twitter’s stock has fallen about 30 percent since the deal was announced, and trades well under the Mr. Musk’s offering price of $54.20 a share.

Legal experts said Mr. Musk’s dispute over spam could be a ploy to force Twitter back to the bargaining table in hopes of securing a lower price.

During the deal-making, no other potential buyer emerged as a white knight alternative to Mr. Musk, making his offer the best that Twitter is likely to get.

Twitter’s trump card is a “specific performance clause” that gives the company the right to sue Mr. Musk and force him to complete or pay for the deal, so long as the debt financing he has corralled remains intact. Forced acquisitions have happened before: In 2001, Tyson Foods tried to back out of an acquisition of the meatpacker IBP, pointing to IBP’s financial troubles and accounting irregularities. A Delaware court vice chancellor ruled that Tyson had to complete the acquisition,

jittery employees.

attempted to break up its $16 billion deal to acquire Tiffany & Company, ultimately securing a discount of about $420 million.

“This stuff is a bargaining move in an economic transaction,” said Charles Elson, a recently retired professor of corporate governance at the University of Delaware. “It’s all about money.”

A lower price would benefit Mr. Musk and his financial backers, especially as Twitter faces financial headwinds. But Twitter has made clear it wants to force Mr. Musk to stick to his $44 billion offer.

The most damaging outcome for Twitter would be for the deal to collapse. Mr. Musk would need to show that Twitter materially and intentionally breached the terms of its contract, a high bar that acquirers have rarely met. Mr. Musk has claimed that Twitter is withholding information necessary for him to close the deal. He has also argued that Twitter misreported its spam figures, and the misleading statistics concealed a serious problem with Twitter’s business.

A buyer has only once successfully argued in a Delaware court that a material change in the target company’s business gives it the ability to cleanly exit the deal. That occurred in 2017 in the $3.7 billion acquisition of the pharmaceutical company Akorn by the health care company Fresenius Kabi. After Fresenius signed the agreement, Akorn’s earnings fell and it faced allegations by a whistle-blower of skirting regulatory requirements.

Even if Twitter shows that it did not violate the merger agreement, a chancellor in the Delaware court may still allow Mr. Musk to pay damages and walk away, as in the case of Apollo Global Management’s deal combining the chemical companies Huntsman and Hexion in 2008. (The lawsuits concluded in a broken deal and a $1 billion settlement.)

habit of flouting legal confines.

revealed in May that it was examining Mr. Musk’s purchases of Twitter stock and whether he properly disclosed his stake and his intentions for the social media company. In 2018, the regulator secured a $40 million settlement from Mr. Musk and Tesla over charges that his tweet falsely claiming he had secured funding to take Tesla private amounted to securities fraud.

“At the end of the day, a merger agreement is just a piece of paper. And a piece of paper can give you a lawsuit if your buyer gets cold feet,” said Ronald Barusch, a retired mergers and acquisitions lawyer who worked for Skadden Arps before it represented Mr. Musk. “A lawsuit doesn’t give you a deal. It generally gives you a protracted headache. And a damaged company.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Factbox: Companies offering abortion travel benefits to U.S. workers

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

June 29 (Reuters) – A growing number of companies, including JPMorgan Chase & Co (JPM.N), Amazon.com Inc (AMZN.O), Tesla Inc (TSLA.O) and Walt Disney Co (DIS.N) are updating or changing their health insurance policies to offer travel benefits to U.S. employees who may need to access out of state abortion services.

The U.S. Supreme Court on Friday took the dramatic step of overturning the landmark 1973 Roe v. Wade ruling that recognized a woman’s constitutional right to an abortion and legalized it nationwide. read more

Below is a list of companies that have said they will cover or reimburse U.S. employees who need to travel to receive medical care, including abortion, if access where workers live is restricted.

Register now for FREE unlimited access to Reuters.com

Airbnb Inc (ABNB.O)

Alaska Air Group Inc (ALK.N) read more

Alphabet Inc (GOOGL.O)

Amazon.com Inc (AMZN.O) read more

American Express Co (AXP.N)

Apollo Global Management Inc (APO.N) read more

Apple Inc (AAPL.O)

AT&T Inc (T.N)

Bank of America Corp (BAC.N)

Bank of Nova Scotia (BNS.TO)

Blackstone Inc (BX.N) read more

Block Inc (SQ.N)

Bumble Inc (BMBL.O) read more

Canadian Imperial Bank of Commerce (CM.TO)

Carlyle Group Inc (CG.O) read more

Chobani

Citigroup Inc (C.N) read more

CVS Health Corp (CVS.N)

Deutsche Bank AG read more

Dick’s Sporting Goods (DKS.N) read more

DoorDash Inc (DASH.N)

Equinox

Goldman Sachs Group Inc (GS.N) read more

Gucci (PRTP.PA)

H&M (HMb.ST)

HubSpot Inc

Intel Corp (INTC.O)

Johnson & Johnson (JNJ.N) read more

JPMorgan Chase & Co (JPM.N) read more

Kroger Co (KR.N)

Levi Strauss & Co (LEVI.N) read more

L’Oreal (OREP.PA)

LVMH (LVMH.PA)

Lyft Inc (LYFT.O) read more

Macy’s Inc (M.N)

Mastercard Inc (MA.N) read more

Meta Platforms Inc (META.O) read more

Microsoft Corp (MSFT.O) read more

Morgan Stanley (MS.N) read more

Netflix Inc (NFLX.O)

Nordstrom Inc (JWN.N)

OKCupid (MTCH.O) read more

PayPal Holdings Inc (PYPL.O)

Pinterest Inc (PINS.N)

Proctor and Gamble Co(PG.N)

Ralph Lauren Corp (RL.N)

Rivian Automotive Inc(RIVN.O)

Starbucks Corp (SBUX.O) read more

Target Corp (TGT.N)

Tesla Inc (TSLA.O) read more

TPG Inc (TPG.O) read more

Uber Technologies Inc (UBER.N)

Ulta Beauty Inc (ULTA.O)

Unilever PLC (ULVR.L)

United Talent Agency read more

Walgreens Boots Alliance Inc (WBA.O)

Walt Disney Co (DIS.N) read more

Wells Fargo & Co (WFC.N) read more

Yahoo

Yelp Inc (YELP.N) read more

Zillow Group Inc (ZG.O)

Register now for FREE unlimited access to Reuters.com

Reporting by Doyinsola Oladipo and Akash Sriram; Additional reporting by Chavi Mehta, Manas Mishra and Nichola Saminather; Editing by Anna Driver, Rosalba O’Brien, Bill Berkrot, Daniel Wallis, William Maclean

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

How Elon Musk and Tesla Helped Make C.E.O Pay Even Richer

While those compensation totals are taken from the company’s financial filings, they are often estimates driven by the companies’ attempts to value the stock their chief executives might receive. As a result, the executives may earn less than those totals, especially if the bear market persists and their companies’ stock prices remain depressed, but they could also take home far higher amounts should the stocks recover.

Many of the highest-ranking executives in the survey received pay packages that were far larger than those of the heads of far bigger companies with much larger profits. For example, Tim Cook, chief executive of Apple, received his first equity award since 2011 last year and had total compensation of $99 million, putting him just 13th in the survey.

Despite the growth in pay, shareholders, apparently believing that it is being tied to performance, have voted in favor of most packages. Only 3 percent of “say on pay” votes got less than 50 percent support from shareholders in the year through June 3, according to an analysis of 1,444 public companies by Willis Towers Watson, a consulting firm that advises companies on executive pay programs and corporate governance matters.

For several years, public companies have had to compare their chief executive’s compensation with that of a typical employee, the result of a regulation passed by Congress that aimed to help investors assess the level of executive pay. Last year, chief executives earned 339 times more than the median pay of employees at their companies, up from 311 times in 2020, according to Equilar. The median employee wage rose 10 percent last year, to $92,349 from $83,808.

Last year’s executive pay jumped in part because corporate boards, which decide chief executive compensation, wanted to reward top officers for navigating their companies through the pandemic.

In addition, the stock market rallied in 2021, and the value of stock grants, which typically constitute the largest share of chief executive compensation, was also higher. When stock prices are rising, boards tend to say executives are doing a good job — and pay them more.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Bitcoin Plummets Below $20,000 for First Time Since Late 2020

Square, another payments company, bought $50 million of Bitcoin and changed its name to Block, in part to signify its work with blockchain technology. Tesla bought $1.5 billion of it. The venture capital firm Andreessen Horowitz raised $4.5 billion for a fourth cryptocurrency-focused fund, doubling its previous one.

Excitement hit a peak in April last year when Coinbase, a cryptocurrency exchange, went public at an $85 billion valuation, a coming-out party for the industry. Bitcoin topped $60,000 for the first time.

Last summer, El Salvador announced that it would become the first country to classify Bitcoin as legal tender, alongside the U.S. dollar. The country’s president updated his Twitter profile picture to include laser eyes, a calling card of Bitcoin believers. The value of El Salvador’s $105 million investment in Bitcoin has been slashed in half as the price has fallen.

Senators and mayors around the United States began touting cryptocurrency, as the industry spent heavily on lobbying. Mayor Eric Adams of New York, who was elected in November, said he would take his first three paychecks in Bitcoin. Senators Cynthia Lummis, Republican of Wyoming, and Kirsten Gillibrand, Democrat of New York, proposed legislation that would create a regulatory framework for the industry, giving more authority to the Commodity Futures Trading Commission, an agency that crypto companies have openly courted.

Through the frenzy, celebrities fueled the fear of missing out, flogging their NFTs on talk shows and talking up blockchain projects on social media. This year, the Super Bowl featured four ads for crypto companies, including Matt Damon warning viewers that “fortune favors the brave.”

That swaggering optimism faltered this spring as the stock market plummeted, inflation soared and layoffs hit the tech sector. Investors began losing confidence in their crypto investments, moving money to less risky assets. Several high-profile projects crashed amid withdrawals. TerraForm Labs, which created TerraUSD, a so-called stablecoin, and Celsius, an experimental crypto bank, both collapsed, wiping out billions in value and sending the broader market into a tailspin.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

SpaceX employees denounce CEO Musk as “distraction” – letter

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo

Register now for FREE unlimited access to Reuters.com

Orlando, Fla., June 16 (Reuters) – A group of SpaceX employees derided flamboyant billionaire Chief Executive Officer Elon Musk as a “distraction and embarrassment” in an internal letter to executives.

Musk, also head of electric automaker Tesla Inc(TSLA.O), has been in headlines and late-night comedy monologues in recent months for a tumultuous quest to buy social media giant Twitter, a reported allegation of sexual harassment that Musk has denied as well as crude comments online and a foray into political discourse.

“Elon’s behavior in the public sphere is a frequent source of distraction and embarrassment for us, particularly in recent weeks,” read the letter, which does not single out any controversy in particular. Reuters was provided a copy of the letter.

Register now for FREE unlimited access to Reuters.com

“As our CEO and most prominent spokesperson, Elon is seen as the face of SpaceX – every tweet that Elon sends is a de facto public statement by the company,” the letter added.

SpaceX did not immediately respond to a request for comment.

The open letter, earlier reported by The Verge, was drafted by SpaceX employees in recent weeks and shared as an attachment in an internal “Morale Boosters” group chat, which contains thousands of employees, according to a person familiar with the matter.

It was not clear who authored the letter or how many employees were involved in its drafting.

In a list of three demands, the letter says “SpaceX must swiftly and explicitly separate itself from Elon’s personal brand.” It added: “Hold all leadership equally accountable to making SpaceX a great place to work for everyone” and “define and uniformly respond to all forms of unacceptable behavior.”

On Twitter, Musk denied and mocked the reported accusation that he sexually harassed a flight attendant on a private jet in 2016. Some of his tweets displayed the crude levity that embarrassed and had some SpaceX employees cringing, according to three people familiar with private discussions among staff.

“He often doesn’t realize how something he says could affect others,” one SpaceX employee said of Musk. “The letter is a collective ‘Hey! We’re getting some heat for things that are unrelated to us.'”

Many SpaceX employees are frustrated by Musk’s controversies, the SpaceX employee said, yet “remain as focused as ever and excited for the future.”

Musk, also the company’s chief engineer, has been viewed as a central figure in many of SpaceX’s high-profile successes, such as pioneering reuse of orbital rocket boosters and returning routine human spaceflight from U.S. soil after a nine-year hiatus.

Much of the company’s day-to-day business operations are led by SpaceX President Gwynne Shotwell. After past workplace dust-ups she has vowed to enforce SpaceX’s “zero tolerance” standards against employee harassment.

In a talk about leadership at Stanford University in May, Shotwell, asked how she manages crises, said “employees were screaming to hear from me” about the reported sexual harassment allegations about Musk and that she addressed their concerns in a company-wide email.

“I have to speak to my employees,” Shotwell said. “They’re the reason SpaceX is what it is, and I care deeply about them.”

Register now for FREE unlimited access to Reuters.com

Reporting by Joey Roulette; Editing by David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Tesla to Cut 10% of Salaried Staff, Musk Tells Employees

Tesla’s chief executive, Elon Musk, plans to cut 10 percent of the electric carmaker’s salaried work force, he told staff in an email on Friday.

The job cuts will not apply to employees who build cars or batteries or who install solar panels, and the number of hourly employees will increase, Mr. Musk said in the email, a copy of which was reviewed by The New York Times. “Tesla will be reducing salaried head count by 10 percent, as we have become over staffed in many areas,” he said.

Reuters reported the news earlier, citing a different email that Mr. Musk sent only to Tesla executives. The automaker’s share price closed on Friday down about 9 percent after that article was published.

Tesla’s staff has grown substantially as sales have surged and it has built new factories, including two that opened this year near Berlin and Austin, Texas. The company employed more than 99,000 workers at the end of last year. Just two years earlier, Tesla had 48,000.

2017 and 2018.

In recent weeks, investors have begun questioning the company’s sky-high stock price. The market values the company at more than $728 billion, more than several other large automakers combined. Tesla’s shares are down about 40 percent from their high at the end of last year, bringing attention to the risks the company faces from growing competition, accusations of racial discrimination and production problems at its factory in Shanghai.

buy Twitter for roughly $44 billion. Here’s how the deal unfolded:

“From a corporate good-governance perspective, Tesla has a lot of red flags,” Andrew Poreda, a senior analyst who specializes in socially responsible investing at Sage Advisory Services, an investment firm in Austin, told The Times last month. “There are almost no checks and balances.”

Mr. Musk’s management style and success — he is listed as the world’s richest man by Bloomberg and Forbes — have earned him admirers but have made him a lightning rod. Tesla has lost a number of top executives in recent years, many of whom have gone on to top jobs at other automakers, tech companies and battery makers.

Recently, Mr. Musk praised the work ethic in China, where labor conditions can be harsh or even abusive, suggesting that workers in the United States were lazy. “They won’t just be burning the midnight oil. They’ll be burning the 3 a.m. oil,” he said about Chinese workers in an interview with The Financial Times. “So they won’t even leave the factory type of thing. Whereas in America, people are trying to avoid going to work at all.”

Still, some analysts remain bullish about Tesla’s prospects. “In our view, Tesla likely does not need to hire any more employees to maintain its growth, and we think the plan to reduce the work force likely shows that Tesla over hired last year,” Seth Goldstein, a senior equity analyst at Morningstar, said in a note on Friday.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

U.S. SEC looking into Musk’s Twitter stake purchase

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

WASHINGTON, May 27 (Reuters) – The U.S. Securities and Exchange Commission (SEC) is looking into Tesla Chief Executive Officer Elon Musk’s disclosure of his stake in Twitter Inc (TWTR.N) in early April, according to a letter the agency sent to him that month.

In the letter, now made public by the SEC, the regulator asks Musk why it appears he did not file required paperwork within 10 days of the acquisition, and also questions why, when Musk did disclose his stake, he used a form meant for passive investors while he was openly questioning Twitter’s policies around free speech.

Specifically, the SEC asked Musk to explain why he opted to initially file a “13G” disclosure form, which is meant for investors who plan to hold their shares passively instead of a “13D” form, which is for activist investors who intend influence management and policies of the company. He later amended the filing. Musk was offered a board seat shortly after his initial disclosure and has since gone on to attempt to buy the company outright in a $44 billion deal to take it private.

Register now for FREE unlimited access to Reuters.com

Spokespeople for Musk did not immediately respond to a request for comment. An SEC spokesperson declined to comment.

Separately, Twitter said in a filing Friday it was not accepting the resignation of Egon Durban, a Musk ally, from its board. Two days earlier, Twitter shareholders had blocked his re-election, but the company said he brought “unparalleled operational knowledge of the industry” and instead he would reduce his board roles elsewhere. read more

Outside experts had previously said Musk’s late filing and apparently improper paperwork could attract the attention of the SEC, which has sparred with Musk in the past. read more

But the financial consequences for the world’s richest man could be limited, as fines for such a misstep would likely rise to a few hundred thousand dollars, according to outside experts. And others were skeptical it could endanger Musk’s efforts to acquire Twitter.

“I think from that investigation standpoint, the SEC is going to have a pretty strong case that he’s violated securities laws,” said Josh White, a finance professor at Vanderbilt University who previously worked at the SEC as a financial economist. However, he added it “would be disastrous if [the SEC] said, well, this Twitter deal is on hold because Musk filed the wrong form.”

“Twitter stock price would instantly drop … I don’t think that the Commission has an interest in necessarily standing in the way of the deal.”

The SEC’s letter is dated the same day Musk disclosed a 9.2% stake in Twitter. The billionaire has been sued by investors claiming he manipulated the company’s stock price downward and profited by not disclosing his investment on time. read more

The Tesla Inc (TSLA.O) chief executive officer has landed in trouble with the SEC before, when the agency sued him in 2018 after he tweeted he had “funding secured” to potentially take the electric car company private at $420 per share. In reality, a buyout was not close.

However, Reuters has reported that the SEC has previously been reluctant to take Musk to court over perceived violations of the resulting settlement out of concern they might lose the case, and instead has opted to simply urge him to comply. read more

Shares of Tesla were up 5.75% in midday trading, while Twitter shares were up 2.2%.

Register now for FREE unlimited access to Reuters.com

Reporting by Nivedita Balu and Sweta Singh in Bengaluru, Svea Herbst-Bayliss and Pete Schroeder in Washington
Editing by Shinjini Ganguli and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Twitter keeps Musk ally Durban on board, rejects resignation

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

May 27 (Reuters) – Twitter Inc (TWTR.N) said in a filing on Friday it will not accept Egon Durban’s resignation from the board, two days after shareholders blocked his re-election at an annual meeting.

Durban is an ally of Elon Musk, who has offered to take Twitter private in a $44 billion deal. read more

Twitter said Durban failed to receive the support of a majority of the votes in the re-election held earlier this week due to “voting policies of certain institutional investors regarding board service limitations”.

Register now for FREE unlimited access to Reuters.com

Durban, who serves on the boards of six other companies, has agreed to reduce his board service commitments to no more than five public company boards by May 25, 2023, Twitter said.

The social media company added that Durban was an “effective member” of the board and brings “an unparalleled operational knowledge of the industry”.

The vote on Wednesday against the re-election could indicate skepticism among shareholders of Musk’s plan or his willingness to pay what he offered, but investors are expected to overwhelmingly approve the deal at another meeting yet to be scheduled.

Silver Lake Partners, where Durban is co-CEO, helped put together Musk’s $44 billion acquisition of Twitter. In 2018, Silver Lake offered to help finance Musk’s contemplated $72 billion bid to take electric-car maker Tesla Inc (TSLA.O) private.

Musk tweeted on May 13 that the Twitter deal was “temporarily on hold” while he sought more information about the proportion of fake accounts on Twitter.

Separately, the U.S. Securities and Exchange Commission said on Friday it was looking into Musk’s disclosure of his Twitter stake in April. read more

Shares of Tesla Inc (TSLA.O), where Musk serves as the chief executive officer, were up nearly 5%, while Twitter rose marginally in early trading.

Register now for FREE unlimited access to Reuters.com

Reporting by Nivedita Balu and Akash Sriram in Bengaluru; Editing by Krishna Chandra Eluri and Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<