Elon Musk has agreed on closer inspection of his tweets about Tesla. On Friday, Musk and the Securities and Exchange Commission decided that Musk must have a pre-approval attorney for tweets about Tesla's financial health, sales or delivery number – estimated or otherwise – as well as other specific topics, according to a new law.
The two pages were filed late Friday to change the settlement agreement reached last year over the funding secured debacle, which originally asked the SEC to attempt to install Musk's tweets. The US court Alison Nathan, who led the case, still has to approve Friday's change.
According to the archives, Musk now needs Tesla's securities attorney to pre-authorize public written communications containing information on:
- Tesla's financial condition, statements or results, including earnings or guidance
- potential or proposed mergers, acquisitions, disposals, offers or joint ventures
- production, sales or delivery numbers (actual or estimated) that are not shared or those that depart from Tesla's official guide
- new or proposed business areas regardless of Tesla's existing business (defined in the filing as "vehicle, transport and sustainable energy products) "
- changes in the status of Tesla's securities, credit facilities or financing / loan schemes
- non-public legal or regulatory findings or decisions
- which would require the filing of an 8-K form with the SEC , including changes in control over the company or its managing officer and directors
- any other subject that Tesla ̵[ads1]1; or a majority of its independent members of the company's board – believes in must be pre-authorized
This change of residence came after March 19, 1990 Musk ] tweeted Tesla wanted to make "around" 500,000 model 3s this year. This coincided with the company's official guidance of 360,000 to 400,000 cars in total in 2019 (including model S and model X).
Musk corrected with a tweet a few hours later, but the SEC used this opportunity to ask Tesla to prove he was in agreement with the settlement. The agency found that Musk had actually actually had any of his tweets about Tesla pre-approved by the internal lawyer since the settlement came into effect in December.
On February 25, the SEC requested Musk contempt for the court allegedly violating the settlement. Musk and SEC spent the next few weeks archiving issues, with Musk saying the SEC attempted an "unconstitutional arrest", and the agency that told the Tesla CEO was "blatantly offended" by the settlement.
Finally, Judge Nathan Musk and SEC called the court on April 4 for a hearing where she ordered them to work things out. "Take a breath," she said that day, "[and] comes back with reasonable pants."
The Tesla CEO originally came into trouble with the regulatory agency in September last year when he tweeted in August that he considered taking Tesla privately when the company's shares reached a price of $ 420. (Tesla has been a listed company since 2010.) Musk said on Twitter that he had "financing secured" to withdraw from the deal and buy out some shareholders who did not want to stay to the company. He published these tweets during the afternoon while trading continued, and the company's stock price jumped in response.
SEC quickly began a survey of Musk's tweets. The Commission finally discovered that, while having met with Saudi Arabia's sovereignty fund, Musk had never discussed a $ 420 per-share go-private transaction with any potential source of funding, had done nothing to investigate whether it would be possible for all current investors to remain with Tesla as a private company through a special fund, and had not confirmed the support of Tesla's investors for a potential private transaction. "
" Musket's tweets caused market chaos and injured Tesla investors, "prosecutors said.
SEC approached Musk with a settlement in late September on September 28, the secretary Musk charged with valuable scams in the southern district of New York over his "false and misleading" tweets, two days later the two sides reached a settlement, and Musk was forced to go down as Tesla leader for three years, paying a $ 20 million fine, and agreeing to provide an internal lawyer with an overview of all public communications about the company, including his tweets, which may affect Tesla's share price (and, in turn, the shareholders).  One thing we learned in March, when the two sides fought over whether Musk was to be disdained, is that the SEC in the original decision that the Tesla Group knocked down wanted all his public communications to be monitored – matter ale or not, this was a jab for Musk, and the language was eventually softened in the version of the settlement he agreed.
Friday's archiving brings the language closer to what the SEC originally sought. Musk will now be overseen by rashes of specific topics related to Tesla, but he does not need to have every off-handed tweet about the company approved.