SEC to Require Tougher Oversight of Tesla CEO Musk’s Tweets

By Paul Riegler on 27 April 2019
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A Tesla Model S

Tesla CEO Elon Musk and the Securities and Exchange Commission reached a deal that would remove the threat of having him held in contempt for allegedly violating an earlier court order over his use of Twitter.

The SEC investigated tweets made by Musk in 2018 about a potential buyout of his company, which turned out to be false, alleging he misled investors.

Musk paid $20 million at the time to settle the case and agreed to have any statements including tweets reviewed by Tesla lawyers. In February, he appeared to violate the agreement by tweeing about Tesla’s production figures without the requisite approvals.

Under the terms of a revised agreement, Musk will need preapproval to send tweets about a wide range of subjects relating to Tesla’s business. The list includes sales figures, new products, and financial projections, as well as production estimates, which was the subject of the tweet he made on February 19, 2019 which got him into hot water with the SEC again.

Tesla independent directors will also be able to dictate other topics to be added to the list of items that require preapproval.

The deal requires the approval of U.S. District Judge Alison Nathan for it to go into effect.

(Photo: Accura Media Group)