SEC: Tesla Failed to Oversee Elon Musk’s Tweets

Discussion in 'Wall St. News' started by Butterfly, Jun 2, 2021.

  1. Butterfly

    Butterfly

    For those here who believe that posting manipulative shit on social media has no consequences and it's just freedom of expression and business as usual, maybe you should see this :)

    https://www.wsj.com/articles/tesla-...k-s-tweets-sec-argued-in-letters-11622582765?

    WASHINGTON—Securities regulators told Tesla Inc. TSLA -0.21% last year that Chief Executive Elon Musk’s use of Twitter had twice violated a court-ordered policy requiring his tweets to be preapproved by company lawyers, according to records obtained by The Wall Street Journal.

    Tesla and the Securities and Exchange Commission settled an enforcement action in 2018 alleging that Mr. Musk had committed fraud by tweeting about a potential buyout of his company. Mr. Musk paid $20 million to settle that case—Tesla also paid $20 million—and agreed to have his public statements on social media overseen by Tesla lawyers.

    In correspondence sent to Tesla in 2019 and 2020, the SEC said tweets Mr. Musk wrote about Tesla’s solar roof production volumes and its stock price hadn’t undergone the required preapproval by Tesla’s lawyers. The communications, which haven’t been previously reported, spotlight the running tension between the nation’s top corporate regulator and Mr. Musk, who publicly mocked the SEC even after settling fraud claims with the agency.

    The SEC told Tesla in May 2020 that the company had failed “to enforce these procedures and controls despite repeated violations by Mr. Musk.” The letter, signed by Steven Buchholz, a senior SEC official in its San Francisco office, added: “Tesla has abdicated the duties required of it by the court’s order.”

    Tesla, Mr. Musk, and the SEC didn’t respond to requests for comment. The Journal obtained the records under a federal Freedom of Information Act request.
     
    DiceAreCast likes this.
  2. Pekelo

    Pekelo

    Hey, they sent him a strongly worded letter, what else do you want?
     
  3. NIO was his punishment yesterday

    upload_2021-6-2_6-0-5.png
     
  4. Just delist the damn thing and get it over with. The market already has enough drama.
     
  5. Butterfly

    Butterfly

    the SEC is just waiting for him to post some significant damaging shit before they ask him to be removed from the company and the board,

    I think he is that close from being fired from his own company for compliance reason,

    I guess Asperger has a cost after all,
     
    DiceAreCast likes this.
  6. I have said for years that he is shoveling his own grave. He will go down in history as a guy with connections and funding and an eye to hire brilliant engineers who introduced multiple innovations to the world (not him but his engineers). He is above intelligent but certainly miles away from being brilliant. A highly intelligent individual won't behave like he does. Certain above average intelligent people struggle with hubris in believing they are absolutely brilliant and 6 Std away from the mean, iq wise. They are not, and they leash out at anyone who question them. Just need to look at Des.

     
  7. qlai

    qlai

    Although I am not a fan of the pump and dump tactics of his, he is unquestionably a brilliant guy(Steve Jobs caliber). I also think that what he’s doing is questioning the status quo. Just because boomers are still in power, doesn’t mean their rules are appropriate for new generation.
     
    TimtheEnchanter likes this.
  8. Cuddles

    Cuddles

    Would be karmic after kicking the cofounders from their own company.
     
  9. optquant

    optquant

    So for SEC
    Trump market twits were ok,
    Musk TSLA twits were not ok ?
     
  10. Isn't that a completely different context? Did Trump preside over his company(s) and was actively involved in the day to day business during his time as president? Did he pre position and then tweet to motivate other investors to align with the goal of making others drive up the value of positions he was already in? Did he mislead investors by being a meme and jumping onto a highly volatile vehicle only to exit it completely only months later and did he announce that exit in a sudden unexpected tweet? If then the two cases are similar, otherwise they seem quite unrelated. If one wants to smoke out Trump then it would be much better to gain hard evidence of pussy grabbing, abuses, corruptive behavior, illegal business dealings, tax cheating, lying to the public that elected him.



     
    #10     Jun 3, 2021