December 11, 2023

SEC: Tesla failed to control Elon Musk's tweets

SEC: Tesla failed to control Elon Musk's tweets

The US securities regulator believes that Elon Musk twice violated the agreement requiringprior approval of his tweets by Tesla lawyers.

In 2018, the SEC sued the billionaire for his tweet about plans to make Tesla a private company. The lawsuit noted:

Musk falsely indicated that, if he so wished, he could certainly take ownership of Tesla at a purchase price that reflects a substantial premium over Tesla's current share price.

As part of a $ 40 million dispute settlement, half of which was paid by Musk and half by Tesla, the billionaire agreed to have his tweets checked by lawyers from now on.

Now the SEC says lawyers failedwith your work. Musk's tweets about the “inflated price of Tesla shares” and solar panel production volumes, according to the SEC, were not properly verified.

However, Tesla's lawyers said that these accusations are “made up out of thin air” and that “SEC is conducting a witch hunt”. Lawyer Alex Spiro said:

The serial nature of these investigations gives us serious concern that the Securities and Exchange Commission is pursuing Musk without an adequate target.

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