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Drudge Retort: The Other Side of the News
Wednesday, April 02, 2025

Today, New York City Comptroller Brad Lander urged the New York City Law Department to pursue securities litigation against Tesla on behalf of the the New York City pension systems. The basis of the potential litigation are the material misstatements from Tesla claiming that CEO Elon Musk spends significant time on the company and is highly active in its management, despite his helming the Trump Administration's DOGE initiative, spending little of his time actually managing Tesla, and promoting policies that are actively harmful to Tesla's business.

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Tesla's vehicle sales fell 13% in the first quarter, dragged down by the changeover of its most important model and international backlash against Elon Musk

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-- Bloomberg News (@bloomberg.com) April 2, 2025 at 9:11 AM

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More from the press release ...

... "Ever since Elon Musk took over DOGE and became best-friend-in-chief with President Trump, Tesla"where Musk is supposed to be CEO"has suffered financially, causing enormous losses for Tesla shareholders," said Comptroller Brad Lander. "In less than three months, Tesla stock has lost nearly 40% of its value, with losses over $300 million for the New York City pension systems.

We have long expressed concerns that the Tesla board has failed to provide independent oversight, or to require that Musk -- or someone else -- serve as a full-time CEO. Now, it appears that material misstatements from Tesla misled investors about his role at the company.

That's why I'm calling on the Law Department to file securities litigation: because Elon Musk is so distracted that he's driving Tesla off a financial cliff and taking down shareholder value with it." ...


#1 | Posted by LampLighter at 2025-04-01 08:22 PM | Reply

13%

That's it.

Literally buying a car from a Nazi just reduces sales by 13%.

Humanity disgusts me some days.

#2 | Posted by DarkVader at 2025-04-02 09:48 PM | Reply | Newsworthy 2

Oh boy more lawfare!

#3 | Posted by itchyp at 2025-04-02 10:07 PM | Reply

Roughly half the country doesn't pay attention to politics, by which I mean they think of it no differently than they think about the weather. It's sort of an inevitable thing that just happens, beyond our control.

It's not hard to see why they think that,
as all the kings horses and all the kings men stand around doing nothing
while Trump crashes Air Force One into Wall Street

"I do not remember any reports to us, a kind of strategic warning, that tariffs might use tariffs as weapons."
--Consolation Rice, in the aftermath of the April 2 attacks.

#4 | Posted by snoofy at 2025-04-02 10:21 PM | Reply

In 2008 the CMBS (commercial mortgage backed securities) market crashed completely. Why? The buyers of the most senior bond tranches, those farthest from risk of default, started toe actually read the prospectuses issued in advance of the sales of new CMBS issues. Those investors were shocked at what they saw, and started to forcefully push back on the loan underwriting and the underwriting of bond issues. The result was the the CMBS market ceased to issue new paper for more than a year, and it took about five years for the market to correct itself.

The NYS pension funds which bought TSLA shares need to (1) bite the bullet and sell ALL of their TSLA holdings, and book the losses; (2) dump any private-issue bonds they bought at the time of the buyout of Twitter (the losses on that paper have already been booked); and (3) talk loud and long about how by any reasonable measure shares of TSLA are over-priced by approx. 8-10 times, when those shares are compared to shares of any other auto maker. The institutional investors have to get out, explain clearly why they are getting out, and start the process of the decline of the price of TSLA share. Doing so will hurt Leon Skum more than any other action which might be taken, short of shooting him on Fifth Avenue...

#5 | Posted by catdog at 2025-04-03 08:28 AM | Reply

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