CONNELL: NUMBER OF ISSUES
WE'LL DIVE IN ON ALL SORTS OF
ANGLES.
CHARLIE GASPARINO IS HERE ALONG
WITH KRISTINA PARTSINEVELOS
COVERING THE STORY AND DAN
SHAFFER, WELCOME OFF.
YOU'VE BEEN ON THIS KRISTINA.
WE'LL START WITH YOU.
AS HARVEY SAID, THERE ARE A
NUMBER OF, ON THE TIMING OF THE
TWEET THAT HAVE BEEN RAISED FOR
SAUDI THE WEALTH FUND GOT IN ON
THE STOCK.
THAT'S A HUGE VOTE OF
PEOPLE I'VE SPOKEN, TO THE VOTE
OF CONFIDENCE ELON MUSK NEEDS
HE CAN RAISE THE MONEY.
BIG QUESTION IS AND WE CAN
DISCUSS IT RIGHT NOW WHERE IS
THE EXTRA FUND GOING COME FROM
IN ORDER FOR THE COMPANY TO BE
PRIVATE.
CONNELL: HE USED THE TERM
FUNDING SECURED.
>> AND THINK ABOUT WHAT HARVEY
IS SAYING HERE, NOT QUITE
SAYING THAT.
WHAT HE'S SAYING IS LOOK AT THE
WAY THE STORY DEVELOPED
YESTERDAY.
STOCK IS TRADING FLAT.
THERE WAS A LEAK TO THE
"FINANCIAL TIMES" THAT THEY GOT
THE SAUDIS IN 3-5% OF THE
COMPANY.
STOCK GOES UP A LITTLE BIT.
WHO LEAKS THAT STORY?
AND THE NEXT THING WHERE HE
COMES OUT AND MINUTES LATER
AFTER THAT STORY WAS LEAKED, HE
CAME OUT AND SAID I'M GETTING
FUNDING FROM THE OUTSIDE.
I THINK WHAT HARVEY IS
SUGGESTING AND I KNOW HARVEY
PRETTY WELL IS THAT THERE IS AT
CONNELL: RIGHT, WE NEED TO KNOW
MORE.
>> TO A STOCK MANIPULATION
CASE.
THAT'S WHAT HE'S SAYING, WHAT
HE SAID BEFORE THAT IS THAT WE
KNOW THAT ELON MUSK WAS AT WAR
WITH THE SHORTS.
HE HAS A REASON TO STICK IT TO
THEM.
THEY GOT STUCK YESTERDAY.
CONNELL: RED FLAGS FOR YOU,
DAN?
>> PARTICULARLY WHEN THERE'S A
LEAK AND WHAT HE DID.
VERY WEIRD.
NEVER SEEN ANYTHING LIKE THAT
ESPECIALLY AFTER THE 10Q GETS
FILED AND COMES OUT WITH AN
CHAPTER.
CONNELL: WHAT DO YOU WANT TO
KNOW, THEN?
>> I WANT TO KNOW ABOUT THE
FUNDING, OF COURSE, I WANT TO
KNOW WHY HE SAYS HE'S THINKING
ABOUT IT BUT HASN'T DISCUSSED
IT WITH THE BOARD OR CLAUMD THE
BOARD DISCUSSED IT.
WHY WOULD HE COME OUT WITH A
TWEET LIKE THIS?
ELON IS KNOWN FOR SPEAK OFF THE
TOP OF HIS HEAD.
WE KNOW PRESIDENT TRUMP DOES
THE SAME THING.
IN ELON'S MIND, I'M TRYING TO
PUT MYSELF IN AN INVENTOR'S
MIND, THINKS OFF THE CUFF, I
THINK HE SAID IT PREMATURELY
BUT WANTS TO GET OUT.
SpaceX PROGRAM DOESN'T HAVE TO
DEAL WITH INVESTORS -- HOLD
OCHARLIE, DOESN'T HAVE TO DEAL
WITH PUBLIC INVESTORS, WALL
STREET.
I THINK HE'S FED UP WITH THAT.
CONNELL: I UNDERSTAND THAT, MAY
BE GOING ABOUT IT THE WRONG
WAY.
>> ABSOLUTELY WENT ABOUT IT THE
WRONG WAY.
>> NOT REGULATED BY THE
SECURITIES AND EXCHANGE
COMMISSION.
THE PROBLEM THIS GUY HAS,
NORMAL PROTOCOL, AND THAT LEAK
OF THE FT STORY IS A TELL.
THAT IS SO WEIRD.
CONNELL: ABOUT THE SAUDI
SOVEREIGN WEALTH FUND.
WE HAVE ANDREW STALTMAN,
CHICAGO SECURITIES ATTORNEY,
WELCOME.
WANT TO GET YOUR VIEW ON THIS.
CHARLIE BROUGHT UP STOCK
MANIPULATION IN THE HARVEY PITT
INTERVIEW, AND HARVEY IN OTHER
PART OF THE INTERVIEW DID TALK
ABOUT THE TIMING OF THE
ANNOUNCEMENT IN TERMS OF
FUNDING BEING SECURED.
HAFR EEDZ IT COULD BE A FALSE
STATEMENT THAT MR. MUSK MADE
YESTERDAY, HE DIDN'T HAVE THE
FUNDING SECURED AT $420 A SHARE
WHEN HE MADE THE STATEMENT ON
TWITTER.
KNOW?
>> ABSOLUTELY.
LOOK IT WAS BREATH TAKING
IRRESPONSIBLE FOR HIM TO SEND
THAT TWEET OUT.
NOT SOMETHING THAT THE HEAD OF
A PUBLICLY TRADED COMPANY
REGULATORY ACTIONS AND THERE
WAS NO REASON TO DO IT.
AND, YES, THERE IS A CHANCE IT
COULD BE SECURITIES FRAUD IF HE
WAS TRYING TO CRUSH THE SHORTS?
THAT'S A PROBLEM.
IF HE DIDN'T HAVE THE FUNDING
ALREADY SECURED, THEN THAT
COULD BE MANIPULATION.
GUY TO DO.
CONNELL: EVERYBODY ELSE CAN
WEIGH IN ON ANDREW.
WHAT DO YOU NEED TO KNOW FROM
ELON MUSK, WHAT DOES HE NEED TO
WHAT WOULD BE YOUR QUESTIONS
FOR HIM?
>> NUMBER ONE, HAVE TO SEE IF
AND NUMBER TWO AND MOST
IMPORTANTLY, WHAT DID THE BOARD
KNOW AND WHEN DID THEY KNOW IT?
IF THIS ISN'T THE THING HE GOT
PRE-BOARD APPROVAL FROM, THAT'S
A HUGE PROBLEM.
THERE NEEDS TO BE AN AK
SUBMITTED, IF NONE OF THAT
STUFF WAS DONE, MR. MUSK HAS A
SERIOUS PROBLEM ON HIS HANDS.
>> SPEAKING OF TIMING, HE MADE
THE ANNOUNCEMENT ON TWITTER AND
THE COMPANY CAME OUT WITH NO
SIMULTANEOUS.
>> AND THEY'RE NOT THE SAME,
EITHER.
>> SIX OUT OF NINE BOARD
MEMBERS SIGNED IT.
I'M SKEPTICAL ABOUT THAT, AND
COMPLAINTS THE BOARD IS NOT
INDEPENDENT.
EXACTLY WHEN HE RECEIVED THE
FUNDING TO MAKE SURE HE IS NOT
GOING TO BE CHARGED FOR FRAUD.
>> I WILL SAY THIS NO BOARD IS
INDEPENDENT.
LOOK WHAT'S GOING ON AT CBS
RIGHT NOW.
I THINK THAT'S WHY YOU HAVE THE
RULES IN PLACE, AND WHAT WAS
STRIKING TO ME IS THAT HIS
TWEET WAS DIFFERENT THAN WHAT
WAS SORT OF -- WHAT WAS
RELEASED.
CONNELL: THEY ADDED TO IT IN
THE STATEMENT.
>> IT WAS HEDGED.
THE RELEASE SAID WE WERE NOT
THERE YET, I'M PARAPHRASING,
CONSIDERING THIS.
>> HE WAS THE HEAD IN THE
FRONT.
CONNELL: THE MODERN WORLD WE
TWITTER.
>> YOU ARE.
CONNELL: YOU ARE, BUT YOU MUST
HAVE SAID THAT YOU WOULD, AND
TESLA DID THAT.
TESLA SAID WE MIGHT MAKE
ANNOUNCEMENTS ABOUT OUR COMPANY
ON TWITTER, THIS IS MY
UNDERSTANDING, ANDREW, YOU
WEIGH IN ON THIS, YOU ARE
SUPPOSED TO MAKE A SIMULTANEOUS
COMPANY ANNOUNCEMENT, AND THE
ANNOUNCEMENT FROM THE COMPANY
CAME AFTER THE TWEET, WASN'T AT
THE SAME TIME.
IS THAT AN ISSUE?
>> THAT'S RIGHT, UNDER REG FD,
SUPPOSED DOING DISCLOSED ACROSS
MULTIPLE DIFFERENT CHANNELS.
WHERE IS THE BOARD?
WE KNOW MR. MUSK HAS A LONG
HISTORY OF SENDING PROBLEMATIC
TWEETS OUT.
REMEMBER THE ONE ABOUT McCABE
BEING A CHILD MOLESTER?
AND THE COMPANY GOING BANKRUPT
>> I WOULD SAY THIS IS MORE
SERIOUS, AND SAY IT THIS WAY, I
DON'T REMEMBER THE LAST REG FD
CASE THAT WAS BROUGHT.
THEY DON'T BRING THE CASES A
LOT BECAUSE THERE'S A LOT OF
GRAY AREA, WIGGLE ROOM.
PROBLEM IS IN THE SECURED
FINANCING.
CONNELL: IF HE HAS AN ISSUE,
THAT MIGHT BE THE BIGGEST
ISSUE.
>> DON'T YOU THINK HE WOULD
HAVE HAD FUNDING, HE WOULDN'T
HAVE COME OUT WITH A TWEET LIKE
THAT.
>> HE BETTER.
>> FAIR DISCLOSER.
>> AND HE BETTER HAVE
DOCUMENTATION.
>> MOST PEOPLE -- MOST OF THE
BANKS AROUND THAT ARE GETTING
CALLED RIGHT NOW DON'T KNOW
WHERE IT'S COMING FROM.
>> THE SAUDIS ARE SELLING
CANADIAN ASSETS.
