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Tesla receives subpoena from U.S. securities regulator over 2018 settlement

Published 02/07/2022, 06:45 AM
Updated 02/07/2022, 03:06 PM
© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin are seen in front of Tesla logo in this illustration taken, February 9, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Subrat Patnaik and Akash Sriram

(Reuters) -Tesla Inc said on Monday it received a subpoena from the U.S. securities regulator related to a settlement that required Chief Executive Elon Musk's tweets on material information about the company to be vetted.

The subpoena by the U.S. Securities and Exchange Commission was issued on Nov. 16, some 10 days after Musk asked his Twitter (NYSE:TWTR) followers https:// if he should sell 10% of his stake in the company, triggering a stock selloff.

As of last close, the electric-car maker's shares had fallen by nearly a quarter since the tweet. The shares were down 1.4% at $909.98 on Monday morning.

The SEC's latest action, which was disclosed in a securities filing by the automaker, adds to pressure on Tesla (NASDAQ:TSLA) from federal auto safety regulators regarding vehicle recalls https://reut.rs/3J6zUFB and investigations related to its driver-assistance software. The SEC declined to comment.

In 2018, Musk settled a lawsuit https:// by the SEC over his tweet on taking the company private, agreeing to have the company's lawyers pre-approve tweets with material information about the company.

Tesla in December https://reut.rs/3LecIHk was hit by a lawsuit over Musk's social media posts including his Twitter poll on stock sales that pulled down the company's share price. This was not the first lawsuit accusing https://reut.rs/3slo0Rh Musk of violating the settlement terms.

Reuters reported last year that the SEC has opened an investigation https://www.reuters.com/markets/commodities/exclusive-sec-probes-tesla-over-whistleblower-claims-solar-panel-defects-2021-12-06 into a whistleblower complaint that Tesla failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years.

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Tesla said on Monday it "routinely" cooperates with government subpoenas and other investigations and inquiries.

In the filing, the company also said the California Department of Fair Employment and Housing investigated allegations of race discrimination and harassment in Tesla workplaces and gave notice that it has grounds to file a civil complaint against the electric-car maker.

Tesla has already been battling a series of lawsuits on racial abuse and sexual harassment, and a federal jury in October ordered the company to pay $137 million to a Black former contract worker in one of the cases.

New York State Common Retirement Fund said on Monday that it has filed shareholder proposals with Tesla, Activision Blizzard Inc (NASDAQ:ATVI) and Starbucks Corp (NASDAQ:SBUX), requesting they report on their efforts to prevent harassment and discrimination against employees.

The proposals ask the companies to disclose, among other things, the total number and aggregate dollar amount of disputes settled related to sexual abuse or harassment or discrimination.

MUSK-WHITE HOUSE TENSION

Tesla and the White House have been at odds over the past few months, with the Biden administration focusing on legacy automakers, including Ford Motor (NYSE:F) Co and General Motors (NYSE:GM) in the electric vehicle race.

Last month, GM and Ford's CEOs attended a meeting of tech and auto companies hosted by U.S. President Joe Biden. Musk was not on the list of attendees.

Musk has been using his Twitter account to attack the Biden administration for allegedly ignoring Tesla and holding up Detroit automakers as leaders in the shift to electric vehicles. Musk called Biden a "damp sock puppet https:// in a tweet last month.

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Musk is also feuding https://reut.rs/3sr49QZ with the United Auto Workers (UAW) union, a key ally of Biden's. The National Labor Relations Board in March ordered Musk to delete a tweet that said Tesla workers could lose stock options if they voted to join the UAW. Tesla is appealing that order.

Tesla said on Monday the fair market value of the electric-vehicle maker's bitcoin holdings as of Dec. 31 was $1.99 billion.

The company, which had invested $1.5 billion in bitcoin last year before selling 10% of the holding, said it registered about $101 million in impairment losses last year due to the value of bitcoin.

Latest comments

SEC = Short Sellers Enrichment Commision, a very corrupt gang.
lol, tesla routinely cooperates - that's because everyone's on a first name basis they have so much contact over all the defects
The Freedom Convoy and GoFundMe comments were not welcomed by the Biden Administration. We love you Elon, fight the power!
This article states the Biden simply prefers Ford and GM. The reason is because Biden wants a bribe in the form of Union Dues. These dues fund the Democrat Party. most years Union dues total the TOP funders of Campigns - like Hilary. Hilary's #1 contributor was the Union SEIU. And I hated my funds being used for that!!
Elon musk's should just withdraw his contract with bitcoin & start new plans with Panasonic
Good recap, but it lacks the solar city story
anyone that questions Comrade Biden and his regime will be targeted.
Music in my ears. I don't trade this junk so I don't really care.
Good. Tesla is an evil company led by a psychopath
Just because they don't unionize, and are ahead of the competition for ev and other areas, it's natural to have to some dislike and hatred. They fail to acknowledge that the company has done some real innovation
A weak currency influenced by everything. Good for speculation, bad for everything else.
Doesnt seem like they are bothered 😂
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