Hey boys and girls: this is tom, and i have an amazing video for you today. You better get grandpa out of the basement and sit in front of the tv, because monday is about to get interesting. Elon is going to court to defend the solar city acquisition from 2016 2.6 billion lawsuit a huge deal, we're gon na talk about in a second. My name is tom nash, and i quit my corporate job as a senior financial analyst to break down companies for you.

There's one thing you need to know about me: i don't take from anybody hey, this is tom and we have to talk about the elon musk lawsuit. This is a huge thing, but also i have some other golden nuggets in this video for you, like the rubber shortage, it's gon na be funny. It's gon na be entertaining, and mainly it's gon na be educational. So don't click, nothing, no smash, nothing don't buy.

Nothing. Don't subscribe, nothing just give me your attention. Let's get started so the elon musk lawsuit what the hell is going on. So let me give you my two cents about it.

First of all, what's going on here, so elon musk is personally getting sued by his own shareholders, tesla shareholders for his involvement in the decision of tesla to acquire solar city in 2016 for 2.6 billion dollars. So the shareholders are alleging that elon musk, basically because he was so heavily involved with solar city himself and his cousins were involved in it. He basically did it to benefit himself and his cousins and used tesla money and tesla shareholders, money to finance that acquisition and they're suing him for a lot of money. Now the directors have already settled for 60 million dollars and basically they're not gon na be paying anything because they are insured.

So basically they just got away scotch free. So what are my two cents about this deal? So, first of all, i'm sure that the deal was legally approved when you do insider dealing like this with a company you or your relatives have interested in. You have to get a lot of approvals from external directors, but not whatever i'm sure that was done. He has good lawyers, the company's good lawyers.

That's not the point of this lawsuit. The lawsuit is basically saying well. The main motivation for this deal was to benefit yourself and your relatives and that's not something a legal approval like this actually gets you immune from now. Speaking about immune from elon is not an idiot.

He knew that this thing is going to come back and cause havoc in his life. He knew it. He knew that weave is gon na. Do that deal.

It's gon na cause a pandemonium of people trying to get a piece of him now. That means that his interest in solar city was so great that he was willing to take this on in order to get the company into tesla. Now. Have things changed since then? Does he now think that torah city is trash? Does it now have other interests? I don't know, probably i mean that's elon, it's been five years, but did he do this to intentionally help his relatives and himself? I don't think so and here's the reason why i mean if he wanted to actually manipulate corporate governments to make money.

There were so many opportunities and he knows he's in the limelight. He knows that this is going to get scrutinized up the wazoo and he still did it. So my reasoning is that i don't think that he did this on purpose to benefit anybody else. However, would i have done it no for one reason, because i think the optics are so horrible that no deal is worth what he's about to go through right now, even if he thought that slaughter city is the best thing since slice putin, he should not have Done this deal because it has bad optics and creates a lot of noise and a lot of things that take away distraction from tesla into this nonsense.

Now beyond the fact that this lawsuit is huge, two billion dollars even for elon is a lot of money. Think about it also, the g20, the biggest business 20 countries in the world just announced that everybody approved the new minimum global tax. The corporate 15 tax, in order to avoid the race to the bottom. Only problem is that three countries did not agree, which is estonia and hungary, which is not that relevant, but also ireland, and with all due respect to estonia and hungary.

I think the big story here is that ireland did not get on board, especially when ireland was the country, that's essentially being targeted with this new legislation. So it's essentially like saying that the operation succeeded, but the patient pretty much died. That's the kind of situation they're dealing with here, but again it's a pr move. Let me explain why ireland was such a huge deal and what not having ireland there is actually very painful for the settlement.

Essentially, it means nothing without ireland so check this out. The way this tax system works in this new tax world is basically that every country has their own tax and every other country has their own tax, and if the country operates in both countries, they divide the taxation rights between themselves based on double tax treaties. That's the basic principle of it right now, if you put your headquarters and you put all your vip in a country that has low corporate tax rate - and you basically say well whatever i have in the us, it's just marketing, it's just r d, my ip and My main focus is an island or in cyprus or whatever right, then, the most of your operation is getting taxed in that specific country. That's the case of ireland and that's how ireland made a killing by attracting the googles, the amazons, the facebooks.

Everybody flocked to ireland because they were the first to identify this as this massive opportunity to create a hub for these tech companies. Now what happened recently is that a lot of these other countries have tried to do similar stuff. The patent box in the uk, the us with their tax reform, everybody tried to copy ireland, but couldn't it was too late? They had first mover advantage and companies that already settled the island are not going to be moving around like they're. You know the jeffersons.

I mean that's pretty much, you know they're there. It's done now. Here's the thing. Now what happened is once these other countries saw that their initiatives are not generating as much activity as the irish one they're not getting as much impact, because ireland has pretty much made a killing, they basically said well, if you can join them, beat them.

Basically, they all decided to gang up against ireland and create this system, so not really playing fair here and not a huge surprise that island isn't joining on board now. The whole idea for this is like the whale from hobbes. If you have any idea about, you know, liberalistic literature, basically hobbs came up with the idea of the will. Everybody gives up a little bit of their own ultimate freedom to do whatever the hell they want in order for us to live in the peaceful society.

So that way, you don't have anybody, rob anybody or threaten or beat up. You know you give up some of your freedoms so that everybody lives in peace. That's the whole, like principle, philosophic principle of this plan. However, this is business.

This isn't liberalistic human rights now in business. If you have first mover advantage - and you created this technological hub and your main source of attraction for these companies - is your lower tax, there is no way in hell that island is joining the security unless they get a brink struck, i mean they have to back Up some massive brink trucks into ireland to pay them off to agree to this, which would essentially have the same result. So i think that this is a massive pr move, but in fact, with ireland opting out it's pretty much a wash now beyond that, let's run quickly through other news that you have to hear. First of all, 48 000 cases daily in the u.s.

That's the highest number we had since may, and that's pretty much driven by the delta variant. The good news are is that the mortality rate isn't as bad as it was during the first time, so this might be temporary. This might be not, i don't know, it seems, like all the indicators are saying that covert is creeping back up and i hope we have time to eliminate this before it actually blows out of proportions. But if it's not it's a good time to start thinking and looking at code friendly investments again just to put them on your short list and be ready and beyond that, we do have a rubber shortage right now, apparently, now that we're done with wood, we went To rubber, why is my mind in the gutter? I don't know, but a rubber shortage? What have you guys been doing after coving? Oh, my god, everybody's partying, like it's 1999 chill, and on the serious note we have two pieces of information coming out of china that you have to hear.

First of all, a chinese company is now being investigated by the uk regulators for allegedly trying to take over the country's biggest chip manufacturer what the hell is going on with that more information coming up when i find out more but tencent, which is a giant from China basically got blocked by the chinese anti-trust regulators, basically eliminating their ability to carry out the planned merger which they were building for a long time, basically preventing a monopoly of sorts. Now, it's kind of amusing to me that china is now becoming slowly. The advocate you know the prime fighter against monopolies, so i do hope you enjoyed this video. The previous video i posted two days ago is on the left you can subscribe on the right.

Thank you for the channel members and the patrons for making this possible. You guys are amazing, see you guys in the next video.