Published: Mon, April 29, 2019
Money | By Ethel Goodwin

Tesla’s Elon Musk and the SEC resolve dispute over his tweets

Tesla’s Elon Musk and the SEC resolve dispute over his tweets

In a letter filed on Thursday, April 18, 2019, lawyers for Musk and the USA government asked for another week to negotiate a deal to keep Musk from being found in contempt of court.

The Securities and Exchange Commission (SEC) and Mr Musk reached the agreement, which they detailed in filings on Friday in federal court in Manhattan.

Tesla CEO Elon Musk and the US Securities and Exchange Commission have apparently made nice again after a months-long standoff.

The deal requires the entrepreneur to have his tweets about the auto company pre-approved by a securities lawyer before he hits the tweet button.

Judge Nathan, who has presided over the case so far, still needs to approve the amendment.

Musk didn't make any direct comments about the agreement, or how he'll change his tweeting ways, but he did touch on the tiff in a Twitter conversation about his Twitter habit.

If the terms of the agreement are approved by a judge, Musk will not be held in contempt for skirting an earlier settlement with the SEC.

At a hearing earlier this month, Nathan ordered both sides to try to work out their differences, suggesting she could rule on the case if the talks failed. The judge said a written ruling explaining his order would come later.

Last year Musk, 47, tweeted that he had "funding secured" to take the vehicle maker private at $420 a share, or $72bn (£56bn). The tycoon agreed to seek approval for any tweets that were "material" to investors, but tweeted production forecasts in...

In the filing, the two sides said they agreed to make amendments to a deal they struck previous year, laying out more clearly what communications from Musk require oversight and approval by SEC attorneys.

Musk corrected himself four hours later, saying that Tesla would indeed produce about 400,000 cars this year. Musk said he hadn't violated the agreement.

A regulatory fight over Elon Musk's tweeting habit may be over - at least for now.

Word of a settlement came just days after Tesla disclosed a heavy loss in the first quarter as vehicle deliveries sputtered overseas and a USA tax credit that made its prices more attractive was reduced.

Tesla CEO Elon Musk unveils the Model 3 electric auto in 2016.

The Company's financial condition, statements, or results, including earnings or guidance.

The SEC complaint alleged that he mislead Tesla investors with the claim in the tweet, which caused shares to rise, even though he hadn't discussed confirmed key terms of the deal.

Like this: