SEC asks the judge to despise Elon Musk
On February 19, Musk tweeted that "Tesla made 0 cars in 2011, but will make around 500k in 2019." Hours later, Musk sent a follow-up tweet indicating that the company will actually deliver only 400,000 cars this year.
Although Musk corrected his mistake, regulators hid Tesla's CEO because he "again published inaccurate and material information about Tesla to his over 24 million Twitter followers. The SEC noted that he did not request or receive company approval before publishing his tweet
His settlement in September 2018 with the SEC mandates that he receives pre-approval of social media with information that is "the material" of the shareholders. Tesla agreed to establish a board committee to monitor these posts.
SEC said Monday that Musk had "not done a diligent or good faith service" to comply with the settlement. To settle down secu appreciates fraud against the CEO As part of the agreement, Musk was forced to go down as Tesla's chairman.
The CEO's administration The chief executive officer initially had problems with regulators over a number of tweets in August about a potential transaction to take Tesla privately. Musk said he had secured funding to take Tesla private at $ 420 per share, causing the company's stock to rise. But he had not secured the funding, according to the SEC.
Tesla and Musk's lawyers did not immediately respond to requests for comments Monday.
Musk publicly settled the settlement. In an interview with CBS "60 Minutes" in December, Musk said he didn't "respect" the SEC. He also claimed that no one at the company was proofreading all his posts.
"The only tweets that had to be considered … would be if a tweet had a likelihood of causing stock movement," he said. "Otherwise, it's ̵
1; hey, first change."
When asked how he could avoid moving markets if the company didn't go through all his tweets, Musk said, "I guess we can make some mistakes. Who knows?" He added, "No one is perfect."
In his lawsuit on Monday, the SEC pointed to the interview "60 minutes" as evidence that Musk is "not serious" about the settlement agreement.