Tag Archives: Musk

Elon Musk set to testify over Tesla purchase of SolarCity

On Monday, Elon Musk will take the stand to defend Tesla’s $ 2.5bn acquisition of SolarCity in 2016 against a shareholder lawsuit alleging the deal was rife with conflicts of interest.

In the run-up to Tesla Inc.’s 2016 acquisition of a company called SolarCity, Elon Musk hailed the deal as a “no-brainer” – a purchase that would combine the leading maker of electric vehicles with a manufacturer of solar panels that can recharge EVs.

It did not exactly work out that way.

On Monday in the Delaware Court of Chancery, the Tesla CEO will testify about the $ 2.5bn deal in a shareholder lawsuit that alleges that Tesla’s acquisition was rife with conflicts of interest, overlooked SolarCity’s fundamental weaknesses and unsurprisingly failed to produce the profits Musk had promised.

Questioned under oath, Musk plans to defend the purchase as a justifiable acquisition.

At the time of the all-stock purchase, Musk was SolarCity’s largest stakeholder and its chairman. Seven shareholder lawsuits, consolidated into one, alleged that Tesla directors breached their fiduciary duties in bowing to Musk’s wishes and agreeing to buy the struggling company. In what the plaintiffs call a clear conflict of interest, SolarCity had been founded by Musk and two of his cousins, Lyndon and Peter Rive.

Last August, a judge approved a $ 60m settlement that resolved claims made against all the directors on Tesla’s board except Musk without any admission of fault. That left Musk, who refused to settle, as the sole remaining defendant. The trial that begins on Monday had been scheduled for March of last year but was postponed because of the COVID-19 pandemic.

Daniel Ives, an analyst at Wedbush Securities, called the acquisition a “clear black eye” for Musk and Tesla, in large part because SolarCity has failed to turn a profit.

“It basically was putting good money after bad,” Ives said. “For all the successes and all of the unimaginable heights Musk has achieved, this is one of the lowlights.”

Most investors, Ives said, place no value on the company’s solar business.

“I just think Musk and Tesla underestimated the challenges and the hurdles that the business brings,” he said.

That said, Ives said he thought Tesla’s energy business could still become “modestly successful”.

Tesla, which has disbanded its media relations department, did not answer a message Friday seeking comment about the lawsuit. In its 2020 annual report, the company argued that the lawsuit was without merit and that Tesla would vigorously defend itself.

“We are unable to estimate the possible loss or range of loss, if any, associated with these claims,” the company report said.

Tesla’s energy generation and storage business generated $ 1.9bn in revenue last year – 24 percent more than it did the previous year. Much of that revenue came from selling battery storage units. Tesla does not specify whether the business made a profit, and it also has debt and expenses.

The lawsuit filed by the plaintiffs contends that Musk drove the decision to acquire SolarCity despite his clear conflict of interest.

Musk has a history of fighting government agencies and lawsuits. He was forced to pay a $ 20m fine to the Securities and Exchange Commission for making statements on Twitter about having the money to take the company private when he did not. But he won a defamation lawsuit that was filed by a British diver involved in the rescue of a Thai football team that was trapped in a flooded cave. Musk had called the man “pedo guy” on Twitter.

Even if the trial ends with Musk having to pay personally for the whole SolarCity deal, $ 2.5bn will not much hurt the world’s third-wealthiest person. Forbes magazine has estimated that Musk is worth roughly $ 163bn.

Ives suggested that while any such payment would not seriously affect Musk’s wealth, it would damage his reputation for choosing acquisitions.

Musk is fighting the lawsuit after others have settled “because that’s what Musk does”, Ives said. “I think Elon believes this was the right deal and still does.”

Bitcoin price crash: Elon Musk sends cryptocurrencies tumbling – ETH and DOGE down too

Cryptocurrency: Expert discusses success of Bitcoin

At 11am, Bitcoin was priced at $ 39,416. Musk tweeted at 12.07 and by 3.13pm it had dropped to $ 38,532 – a drop of over 1.5 percent. 

1.63 percent drop in just over an hour. Ethereum fell 2.2 percent from $ 2,442 to $ 2,388 during the same period. And meme coin Dogecoin fell from a high of $ 0.314 at 8.15am to a low of $ 0.307 at 3.15pm.

The drop in prices for the cryptocurrencies comes after Elon Musk responded to reports Bitcoin is “greener” than critics say.

The entrepreneur and business magnate hit back at Jesse Powell, chief executive of the Kraken crypto exchange, who said bitcoin is “a lot greener than people give it credit for”.

Mr Powell told Bloomberg TV on Thursday that Musk has got “some more studying to do on this topic.”

Responding to the statement on Twitter, Musk said: “Based on what data?”

bitcoin price elon musk twitter

Bitcoin has seen prices tumble this afternoon, in response to comments by Elon Musk (Image: getty)

bitcoin price

Bitcoin’s price fell this afternoon (Image: Getty)

The comment by the Tesla CEO has reignited his argument that Bitcoin is environmentally damaging due to the “insane” energy use required for the computing work that secures the network and creates new coins.

Last month, Mr Musk said his car company would stop accepting Bitcoin as a payment for its products due to concerns over how cryptocurrency mining contributes to climate change.

He said in a statement: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

The announcement triggered a sharp fall in the price of Bitcoin.

JUST IN: Bitcoin Price: Elon Musk sparks surge as Tesla updates payment plans

bitcoin price latest stocks

Elon Musk made the comment on Twitter (Image: Twitter)

On Sunday Mr Must said Tesla will resume Bitcoin transactions once it confirms there is reasonable clean energy usage by miners.

He said in a Tweet: “When there’s confirmation of reasonable (-50 percent) clean energy usage by miners with positive future trend, Tesla will resume allowing bitcoin transactions.”

Mr Musk’s comments on social media about cryptocurrency often send prices soaring or plummeting.

It comes as new data suggests 2.3 million adults are estimated to hold cryptocurrencies, up from 1.8 million last year, according to the City regulator.

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Bitcoin

El Salvador has approved a bid to make Bitcoin legal tender (Image: GETTY)

Bitcoin

El Salvador’s president Nayib Bukele backed the bid to make Bitcoin legal tender (Image: GETTY)

While ownership of cryptocurrencies has increased, understanding of them appears to have decreased, according to the findings from the Financial Conduct Authority (FCA).

It has warned that investing in cryptocurrencies is high risk and investors should be prepared to lose all their money.

People have around £300 invested on average.

The FCA cryptocurrencies can take many forms and some include Bitcoin and Ripple.

tax rates compared worldwide

Tax rates compared (Image: Express)

Earlier this month El Salvador announced it will become the first country to accept Bitcoin as legal tender.

It plans to use the virtual currency alongside the US dollar.

However the World Bank has turned down a request from El Salvador for help setting this up.

A spokesperson explained: “We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes.

“While the government did approach us for assistance on Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

Bitcoin

Cryptocurrency prices have fluctuated dramatically following Elon Musk tweets (Image: GETTY)

Under new legislation every business in El Salvador will be required to accept Bitcoin as legal tender, unless it is unable to do so for technological reasons.

The proposal, originally made by president Nayib Bukele, has been approved by congress.

However Bank of England governor Andrew Bailey warned of “tough love” as cryptocurrency regulations are strengthened.

He said: “What we cannot have is a world where innovation gets a free pass to ignore the public interest.

“The odds of such an approach not ending well are too high.”

Last month Mr Bailey branded cryptocurrencies “dangerous” and said investors should “buy them only if you’re prepared to lose all your money”.

Express.co.uk does not give financial advice. The journalists who worked on this article do not own Bitcoin.

Additional reporting by Emily Ferguson

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This post originally appeared on Daily Express :: Finance Feed

Elon Musk targeted by hacking group Anonymous over tweets sending Bitcoin price plunging

Billionaire Tesla boss Elon Musk has posted several updates on Twitter centred around the wild fluctuation on Bitcoin‘s price, with the latest being the logo of the world’s most popular cryptocurrency with a broken-hart emoji. He has been extremely vocal in his support of the cryptocurrency market but recently has appeared to lash out at Bitcoin since suspending plans from his company to accept it as payment for its electric cars, citing concerns over its excessive use of energy.

The comments from Mr Musk have infuriated Anonymous, who said in a newly-released video: “Millions of retail investors were really counting on their crypto gains to improve their lives.

“This is something that you will never understand because you were born into the stolen wealth of a South African apartheid emerald mine and have no clue what struggle is like for most of the working people in the world.

“Of course, they took the risk upon themselves when they invested, and everyone knows to be prepared for volatility in crypto, but your tweets this week show a clear disregard for the average working person.

“As hardworking people have their dreams liquidated over your public temper tantrums, you continue to mock them with memes from one of your million dollar mansions.”

In a scathing personal attack, Anonymous claims that despite Mr Musk presenting himself as someone who is concerned about the environment with Tesla’s move away from accepting Bitcoin as a form of payment, he isn’t actually practising what he preaches.

The video says: “For the past several years you have enjoyed one of the most favourable reputations of anyone in the billionaire class because you have tapped into the desire that many of us have to live in a world with electric cars and space exploration.

“But recently your carefully created public image is being exposed and people are beginning to see you as nothing more than another narcissistic rich dude who is desperate for attention.”

Anonymous then took things even further from a personal perspective and claims Mr Musk is suffering from a “superiority and saviour complex”, accusing the Tesla boss of hurting working-class people with his constant “trolling” of the cryptocurrency market.

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“You have even prematurely crowned yourself ‘Emperor of Mars,’ a place where you will be sending people to die.”

“There are plenty of other companies working on space exploration and electric vehicles you are just the only CEO who has gained a cult following through s***posting and trolling the world on social media.

“In fact, many people are not learning that the vast majority of Tesla’s income doesn’t come from selling cars, it comes from government subsidies – selling carbon tax credits for your innovation with clean energy.”

Anonymous concluded in a final warning: “As hardworking people have their dreams liquidated over your public temper tantrums, you continue to mock them with memes from one of your million dollar mansions.

“You may think you are the smartest person in the room, but now you have met your match.

“We are Anonymous! We are legion. Expect us.”

On Friday, Bitcoin’s price plummeted by more than seven percent after the bizarre tweet from Elon Musk, with rival cryptocurrencies also plunging as the volatile market continues to struggle.

Bitcoin’s price has suffered a dramatic fall over the past six weeks, slumping by a massive 42 percent since hitting a record high of $ 63,300 on April 16.

In February, the price of Bitcoin surged to an all-time high after he tweeted Tesla would begin accepting payments of the digital currency for sales of their electric cars.

But on May 17, Bitcoin’s price plunged to its lowest since February after the Tesla boss hinted the electric carmaker may sell its cryptocurrency holdings.

The previous weekend, Mr Musk suggested the firm was considering selling or may have already sold some of its holdings in the cryptocurrency.

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This post originally appeared on Daily Express :: World Feed

No, Musk, don’t blame Bitcoin for dirty energy — The problem lies deeper

Elon Musk is definitely interested in digital currency

Elon Musk is definitely interested in digital currency, but it seems that he doesn’t want to understand it. At least, I worry that he doesn’t have a deep enough understanding of Bitcoin (BTC) and decentralized systems in general.

A decentralized system has to be secure, and proof-of-work (PoW) is the solution for Bitcoin to secure its digital asset. The more successful Bitcoin is, the more energy is required for PoW to secure the network. In other words, the reason that Bitcoin uses up so much more electricity than Dogecoin (DOGE), for example, is because BTC is much more secure than DOGE.

The irony of Elon Musk

From a power perspective, BTC uses up more energy in Bitcoin mining. This is due to the fact that Bitcoin is in a leadership position. The irony is that electricity is amorphous — amorphous in the sense that you don’t know where it comes from. Just by looking at a kilowatt of electricity transmitted to you, unless someone told you, you don’t know where it comes from. You have to track the origin source, where sometimes the source is green and renewable — such as solar, wind, hydro or geothermal — but sometimes the energy is dirty coal, nuclear and other dirty energy supplies that are out there.

The main issue is that energy itself is neutral. Energy doesn’t know where it came from. Energy is just energy — electricity. So, the irony is that with Elon Musk, the electric cars that he sells at Tesla are powered by the same energy that’s used in the coal-powered BTC mining machines. It is ironic that he’s been criticizing the mining machines for using up a lot of energy, as the Tesla cars are powered using a lot of energy that comes from all over the world. If you get to build and sell 10 million cars, they are going to use a lot of energy as a principle.
Who’s right, who’s wrong?

The way to truly get rid of dirty energy is to shut down production at the source: the power plant. This is the only way to get rid of unsustainable sources of energy. If Bitcoin mining is necessary, you may think that Christmas lights are okay or turning on the air conditioning is okay when in reality, Christmas lights — in my opinion — are truly unnecessary. I can also argue that air conditioning is also unnecessary. On the other hand, washing machines and dryers are necessary, but if you really wanted to, you could try to do the laundry naturally, by hand and in the creek behind your house.

Read More Here

Author: Cointelegraph By Bobby Lee
This post originally appeared on Cointelegraph.com News

Bitcoin price tanks after cryptic ‘break up’ post by Elon Musk – 'death cross' fears

Bitcoin nosedived by several percent following the eccentric billionaire’s latest social media post, which suggested he was cutting off ties to the virtual coin. On Friday morning, Mr Musk posted a meme which implied he was going through a ‘break up’ with Bitcoin.

The meme depicted a couple breaking up over excessive quoting of Linkin Park lyrics.

Mr Musk shared the meme with the caption: “#Bitcoin” and an emoji depicting a broken heart.

Bitcoin tanked from this week’s price high of $ 39,000 to a little under $ 36,000 in a matter of hours afterwards.

Ethereum and Dogecoin also took a dive as a result of Mr Musk’s musings.

Ethereum dropped from $ 2,866 to $ 2,566 in a similar pattern to its main rival, Bitcoin, with the popular coins mimicking each other in price drops and surges.

Similarly, Dogecoin’s price followed suit with drops and surges but had more volatile reactions.

The recent price drop follows a warning from a prominent cryptocurrency trader who predicted the world’s most popular virtual coin could be plunging towards a “death cross”.

Crypto trading and analyst company, Rekt Capital, said the economic death knell event could occur by the middle of this month unless Bitcoin’s price increases soon.

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“The Death Cross occurs with some lag. So by the time it happens – a lot of downside will have already happened.”

Now looking at current data, they said: “BTC is potentially on the cusp of a new Death Cross soon.

“If BTC doesn’t increase in its price soon and the EMAs [exponential moving averages] continue at the same current pace…The Death Cross could happen sooner in mid-June 2021.”

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This post originally appeared on Daily Express :: Finance Feed

Bitcoin price crisis: Elon Musk tanks cryptocurrencies with odd Tweet – ETH and DOGE hit

The value of Bitcoin slumped from a high of $ 39,471 on Thursday to just $ 36,600 in early trading on Friday – a drop of 7.37 percent.

Ethereum fell 8.4 percent from $ 2,888 to $ 2,644 while Dogecoin plunged by a massive 13.9 percent from $ 0.43 to $ 0.37.

However, the massive fall in the price of the cryptocurrencies was accompanied by a strange Tweet from Tesla boss Mr Musk, who appeared to mock Bitcoin’s recent struggles.

The tech billionaire has been extremely vocal on social media about the use and future of cryptocurrencies.

But his tweets and comments regularly trigger significant upward or downward movements in the volatile market.

In February, the price of Bitcoin surged to an all-time high after he tweeted Tesla would begin accepting payments of the digital currency for sales of their electric cars.

Bitcoin’s price jumped by a fifth (20 percent )after Tesla said it had made a $ 1.5billion investment.

The firm added it would eventually accept the cryptocurrency as payment for its cars.

This resulted in Bitcoin’s largest daily increase in more than three years, climbing to more than $ 48,000.

Mr Musk briefly became the world’s richest person as shares of Tesla surged nearly 500 percent, with the firm also surging to fifth position in the ranking for the most valuable companies in the US.

But on May 17, Bitcoin’s price plunged to its lowest since February after the Tesla boss hinted the electric carmaker may sell its cryptocurrency holdings.

Bitcoin’s value slumped by almost 10 percent to below $ 45,000 after trading as high as $ 50,000 just a few days earlier.

The previous weekend, Mr Musk suggested the firm was considering selling or may have already sold some of its holdings in the cryptocurrency.

Bitcoin’s price drop was triggered by a tweet sent to the Tesla boss, which said: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings.

“With the amount of hate [Elon Musk] is getting, I wouldn’t blame him.”

Mr Musk simply replied: “Indeed.”

He later followed up that Tweet following the panic he had caused, and frankly wrote: “To clarify speculation, Tesla has not sold any Bitcoin.”

That latest blow for Bitcoin comes a week after the Tesla chief executive said the company had stopped accepting Bitcoin as payment for its cars because of fears over its carbon emissions.

He announced the carmaker had stopped vehicle purchases with the cryptocurrency because of “rapidly increasing use of fossil fuels for Bitcoin mining”.

The Tesla boss tweeted: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Bitcoin’s price had skyrocketed to a record high of over $ 63,300 on April 16 having started the year on $ 29,300 following a strong finish to 2020.

But it has sliced in half since those record highs just six weeks ago, plummeting to just $ 33,600 last weekend.

Last month, Bitcoin suffered a huge hammer blow after the Chinese Government – home to the world’s second-largest economy – banned the use of the cryptocurrency as a form of payment.

This is a breaking story. More to follow…

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This post originally appeared on Daily Express :: Finance Feed

Dogecoin forecast: Elon Musk tipped to ‘test new highs above $1' in crypto 'rebound'

After a quiet couple of days, positive news about Dogecoin being added to Coinbase inspired a sudden surge in price for the “meme cryptocurrency” on Wednesday. It shot up by more than a third within the space of just a few hours and today is still trading at around $ 0.40 (£0.28). Backed by self-proclaimed “Dogefather” Mr Musk, the token has risen more than 12,000 percent since the start of the year, and hit an all-time high last month of $ 0.72 (£0.51).

And crypto analyst Motiur Rahman believes it will surge once more.

Writing in his May report for Daily Forex after the coin dipped at the end of last month, he stated: “Based on price action, it is anticipated that Dogecoin will rebound as investors are expected to get back into the market.

“The short-term moving averages are still gapping up.

“It is an indicator that the price is overall trending up faster than the historical average despite the current correction.

“Looking further ahead, Dogecoin charts point to potential growth, as evidenced by its weekly charts.

“The Dogecoin price chart shows an upward trajectory with consistent gains for six months. The upside momentum is supported in its price action this month.”

And Mr Rahman tipped Tesla CEO Mr Musk to play an important role in that forecast.

He added: “Elon Musk has had a big impact on Dogecoin’s price action. He is the sole reason why Dogecoin is where it is today.

“Dogecoin has experienced significant growth from being a joke coin into one of the most valuable cryptocurrencies and can attribute most of its success to Elon’s tweets and large following, which propelled it to its current success.

READ MORE: Dogecoin warning: Crypto tipped to plunge again as chart forecasts drop to $ 0.18 in days

“Musk, who still shows interest in Doge, recently stated that Dogecoin would be used to fund SpaceX’s trip to the Moon next year.

“However, he later called Dogecoin a “hustle” on primetime television, and nobody was sure if he was joking or not.

“In any case, whether positive or negative, it is likely that the buzz of publicity which has already been created around Dogecoin will continue to keep the interest high and may well produce a strong recovery in the coin’s price.

“This will be one of the factors that might not just see Dogecoin push past its recent highs but possibly test new highs above $ 1 as well.”

Mr Musk celebrated the recent news of Dogecoin being added to Coinable by sharing a meme on Twitter of the token, adding “it’s inevitable”, in an apparent reference to the incoming surge.

He has also called on people to submit ideas for Dogecoin improvements and upgrades and fuelled rumours he is working with doge developers.

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Mr Musk’s support, alongside his dwindling interest in Bitcoin and other cryptocurrencies, has added legitimacy to Dogecoin.

Britain’s Financial Conduct Authority (FCA) has previously warned investors of the risks that come with investing in cryptocurrency.

They said: “If consumers invest, they should be prepared to lose all their money.

“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.

“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”

Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.

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This post originally appeared on Daily Express :: Finance Feed

Elon Musk impressed by 300-year-old Chinese ‘smartwatch’ used by Qing Dynasty

Dubbed “the oldest wearable technology by analysts,” the abacus ring was created in the 17th century to help traders. It features a 1.2cm long, 0.7cm wide counting frame that sits on the finger and seven rods with seven beads on each rod which allowed traders to make quick calculations. While the abacus ring may not be able to make phone calls, it proves that wearable technology might not be as radical a concept as some people think.

And Mr Musk appeared impressed.

Replying to a photo of the ring on Twitter, he branded it “the original smartwatch”.

The origins of the ring are unknown but, the beads are far too small to be moved using fingers, according to Chinaculture.org – a site run under the guidance of the Chinese Ministry of Culture and Tourism.

They said: “It seems that the beads can only be moved by small tools such as pins.

“However, this is no problem for this abacus’s primary user — the ancient Chinese lady, for she only needs to pick one from her many hairpins.”

The original idea is thought to have been created by famous mathematician Cheng Dawei of the Ming Dynasty.

A typical elementary abacus has 10 parallel wires strung between two boards on a frame, with nine beads on each wire.

Each bead has a value of 10, a multiple or sub-multiple of 10.

For example, all of the beads on a particular wire can have a value of one.

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One of the first calculator watches was the Calcron in 1975, which had a nine-digit display.

But one of the earliest true “smartwatches” was the Microsoft SPOT (Smart Personal Object Technology), introduced in 2004.

The SPOT received information such as weather, news, and stock updates through FM radio.

It also received e-mail and instant messages, but users could not reply.

With the rise of the smartphone, smartwatches such as the Sony Ericsson LiveView (2010), the Pebble (2013), and the Apple Watch (2015) emerged that received data from a phone.

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This post originally appeared on Daily Express :: World Feed