Tesla failed to pre-approve Musk’s tweets: SEC

According to a report from the Wall Street Journal, in 2020 the SEC had told Tesla Inc last year that tweets of its CEO Elon Musk had twice violated a settlement requirement wherein it was decided and agreed that his tweets be pre-approved by Tesla’s lawyers.

The SEC had ordered Tesla to vet any material public communications Musk makes regarding Tesla, after his 2018 tweet of having found a secured funding to potentially take Tesla private in a $72 billion deal.

According to correspondence sent to Tesla in 2019 and 2020, the SEC said Musk’s tweets on Tesla’s solar roof production volumes and its stock price were not pre-approved by the company’s lawyers.

“Tesla has abdicated the duties required of it by the court’s order,” states the WSJ’s report citing a letter signed by a senior SEC official.

Neither the SEC nor Tesla immediately responded to requests for comments.

Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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