Elon Musk takes over Twitter

They didn't rule that the SEC is unconstitutional. What they ruled was that the in-house administrative law judges violate people's right to a jury trial, Congress has been delegating legislative power to the SEC illegally since the Dodd-Frank act in 2008, and that the whole thing violates the take care clause in article II of the constitution.

The SEC can still be an enforcement body, it just can't make up the law itself, and then be judge, jury and executioner doing the jobs of the legislature and executive the way the Constitution specifies. It's not like the SEC had no enforcement authority before 2008.

If Elon Musk violates any securities laws he can still be prosecuted. Just not via a shakedown by a bureaucracy with unlimited resources, its own judges, and the ability to drown you in legal costs while denying you a jury trial.

 

People who are anti-authoritarian and care about the rule of law think so.

 

I've long argued that Tesla has been the poster child of the bubble that was blown on the back of all the mispriced debt. And even with the stock price having come back off the peak, Tesla is still trading at a little less than 100 times earnings. If it is ever valued like other car companies, say, 5 or 6 times earnings, Tesla is less than a $50 stock at its current earnings. Valuations are historically still ridiculous, but that is what excessive leverage does. And Tesla has barely even come down, even as some of the other crazy things that got pumped full of leveraged gambling are 60, 70 percent off their peaks right now. In fact, if equity selling gets bad, it might not be a bad strategy to watch Tesla as a guide for when the carnage may be near an end. It led the way for about a decade (much of it when it had no earnings, collected subsidies, borrowed a ton of money and kept diluting its stock with secondary offerings), so it may be the last chip to fall.

Then factor in a wounded global economy in which a year from now, way fewer people may be able to afford $75,000 cars, and if that brings the e part (earnings) of the P/E ratio down, well, you could see that stock deflate a whole lot and bring his net worth way down from here.