SEC found some of Elon Musk’s tweets to be in violation of court settlement terms

The US Securities and Exchange Commission (SEC) said that the head of Tesla Elon Musk over the past two years has repeatedly violated court requirements by his Twitter posts. This is reported by The Wall Street Journal with reference to the correspondence on this issue between the SEC and Tesla, which the publication was able to get acquainted with.

Recall that in August 2018, Elon Musk wrote on Twitter that Tesla could make a private company by buying back its shares for $ 420. After this tweet, the value of the company’s shares fell by 10%. The publication prompted a scrutiny by the SEC, which suspected Mr Musk of attempting to manipulate the value of Tesla’s securities. In 2019, the regulator and Tesla agreed that Elon Musk would no longer post on certain topics on Twitter without prior approval from a Tesla lawyer.

As the correspondence between the SEC and Tesla shows, after this agreement, the regulator saw a violation of its terms in Mr. Musk’s tweets about the production of solar panels and the value of the company’s shares. These publications have not received prior permission from a Tesla lawyer, the SEC points out. Tesla replied that, in their opinion, the tweet about the value of the company’s shares (“Tesla shares are too expensive, IMHO”) is a “personal opinion” of Mr. Musk and does not require the approval of a Tesla lawyer. To this, the SEC noted that the tweet concerns the financial situation of the company, and the topic falls under restrictions. The regulator expressed the opinion that Tesla is not coping with “monitoring compliance with the requirements and conditions, despite repeated violations by Mr. Musk.” “Tesla has renounced the duties imposed on it by the court decision,” says one of the SEC letters. The regulator called on Tesla to reconsider its position on this issue, to tighten control, “to avoid further damage to shareholders.”

Meanwhile, yesterday Elon Musk posted another tweet that caused a violent reaction from the stock market. Head of Tesla spoke out about the children’s song “Baby Shark”, which became the most watched video on YouTube of all time, gaining almost 8.7 billion views. “Baby Shark has smashed everyone! There are more views than people on the planet, ”wrote Mr. Musk. After that, shares in Samsung Publishing, the largest shareholder in the song’s producer, soared in value by more than 10%.

Alena Miklashevskaya

Leave a Reply

Your email address will not be published.