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SEC letters claim Tesla failed to oversee Musk's tweets - WSJ

Published 06/01/2021, 06:26 PM
Updated 06/01/2021, 07:27 PM
© Reuters. FILE PHOTO: SpaceX founder and Tesla CEO Elon Musk looks on as he visits the construction site of Tesla's gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021. REUTERS/Michele Tantussi

(Reuters) - U.S. securities watchdog told Tesla (NASDAQ:TSLA) Inc last year that Chief Executive Officer Elon Musk's use of Twitter had twice violated a settlement requiring his tweets to be preapproved by company lawyers, the Wall Street Journal reported on Tuesday.

The U.S. Securities and Exchange Commission had ordered the electric car maker to vet any material public communications Musk made regarding Tesla, following Musk's August 2018 tweet that he had "funding secured" to possibly take Tesla private in a $72 billion transaction.

In correspondence sent to Tesla in 2019 and 2020, the SEC said tweets Musk wrote about Tesla's solar roof production volumes and its stock price were not preapproved by Tesla's lawyers, the Journal reported, citing records of communication that have not been previously reported.

"Tesla has abdicated the duties required of it by the court's order," the WSJ reported, citing a letter signed by a senior SEC official.

The SEC and Tesla were not immediately available for comment.

(This story corrects to Tuesday from Monday in paragraph 1)

Latest comments

Will the SEC ever grow any *******
The SEC has no credibility.
Musk's tweets, too
Whichever the case, shareholders have to pay the price.
Months late, the SEC rides to the rescue across a 3000 mile varied landscape to the light beyond the golden mountains,.. upon their trusty electric scooter steed.
Musk is a market manipulator leading his heard of sheep to disaster...
blame that on the SEC....... letting this clo-w-n do whatever he wants
The SEC and Tesla were not immediately available for comment.?????Rumors?
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