The SEC has tried for several years to get Elon Musk to behave more like a typical corporate leader. It hasn’t worked.
, settling the case for a combined $40 million and changes to the company’s corporate governance. As part of the deal, it also fashioned a unique way to restrain Mr. Musk’s social-media habit: forcing the company to preapprove any statement by its CEO that could move markets., in 2019 and 2020, arguing that some of Mr. Musk’s tweets should have undergone the required oversight. Tesla disagreed, telling the SEC that his messages weren’t within the scope of the agreement.
There was no precedent for the communications-oversight policy in financial enforcement, although regulators often prod companies to improve compliance in the wake of scandals or missteps. Restraining how a brash CEO communicates with the public and investors has only led to more feuds with Mr. Musk and Tesla, who seem to understand the leverage they have.
“Because Elon is so intertwined with this company, any serious enforcement action against Musk has the potential to harm the company and shareholders,” said David Rosenfeld, a former SEC official now teaching law at Northern Illinois University. “It could end up being counterproductive. Musk has been poking the bear because he knows he can get away with it.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Two Elon Musk tweets have violated SEC settlement agreement, report saysTwo tweets by Elon Musk in the past two years have run afoul of an agreement with the US Securities and Exchange Commission that Tesla lawyers must pre-approve certain posts he makes on the social media site, according to a report by the Wall Street Journal on Tuesday.
Read more »
Elon Musk Tweets Violated Court Order Enacted In SEC Lawsuit Settlement – ReportElon Musk twice violated a court order meant to prevent the Tesla CEO from allegedly using Twitter to manipulate the stock market, according to documents obtained by the Wall Street Journal on Tues…
Read more »
WSJ News Exclusive | Tesla Failed to Oversee Elon Musk’s Tweets, SEC Argued in LettersTesla failed to oversee Elon Musk's tweets in recent years, twice violating a court-ordered policy that requires company lawyers to approve them, the SEC said. Musk and Tesla paid $40 million to settle a 2018 action brought by the SEC over his tweets.
Read more »
SEC said Elon Musk's Tesla tweets violated settlement agreement, WSJ reportsFinancial regulators admonished Tesla for Elon Musk tweets last year, but did not file a motion to compel enforcement of their settlement agreement.
Read more »
Elon Musk says a Dogecoin festival sounds 'fun' ahead of Bitcoin conferenceThe upcoming Bitcoin 2021 conference in Miami may host upwards of 50,000 people—though tickets aren't cheap.
Read more »
Elon Musk says Tesla prices are increasing because of supply chain disruptions across the auto industryBusiness Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »