{"id":550467,"date":"2021-06-03T08:21:09","date_gmt":"2021-06-03T12:21:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=550467"},"modified":"2021-06-03T08:21:13","modified_gmt":"2021-06-03T12:21:13","slug":"report-sec-slammed-tesla-for-failing-to-control-elon-musks-tweets-according-to-uncovered-letters","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-sec-slammed-tesla-for-failing-to-control-elon-musks-tweets-according-to-uncovered-letters\/","title":{"rendered":"Report: SEC Slammed Tesla For Failing To Control Elon Musk\u2019s Tweets, According To Uncovered Letters"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Freport-sec-slammed-tesla-for-failing-to-control-elon-musks-tweets-according-to-uncovered-letters%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=550467&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1130598318-1200x800-1.jpg\" class=\"ff-og-image-inserted\"  style=\"display:none\"><\/div>\n<p><span>According to an exclusive report by The Wall Street Journal, the SEC accused Tesla and SpaceX CEO, Elon Musk, of ignoring a court-ordered policy in 2019 and 2020 regarding his use of Twitter.<\/span><\/p>\n<p><span>\u201c<\/span><span>Securities regulators told Tesla Inc. last year that Chief Executive Elon Musk\u2019s use of Twitter had twice violated a court-ordered policy requiring his tweets to be preapproved by company lawyers,\u201d wrote <\/span><a href=\"https:\/\/www.wsj.com\/articles\/tesla-failed-to-oversee-elon-musk-s-tweets-sec-argued-in-letters-11622582765\"><span>The Wall Street Journal<\/span><\/a><span>. \u201cTesla 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 \u2014 Tesla also paid $20 million \u2014 and agreed to have his public statements on social media overseen by Tesla lawyers.\u201d<\/span><\/p>\n<p><span>According to correspondence sent to Tesla in 2019 and 2020, as described by the Journal, \u201cthe SEC said tweets Mr. Musk wrote about Tesla\u2019s solar roof production volumes and its stock price hadn\u2019t undergone the required preapproval by Tesla\u2019s lawyers.\u201d<\/span><\/p>\n<p><span>The SEC also accused Tesla in May 2020 of having failed \u201cto enforce these procedures and controls despite repeated violations by Mr. Musk,\u201d and said that the company \u201chas abdicated the duties required of it by the court\u2019s order.\u201d<\/span><\/p>\n<p><span>These actions are the latest in a challenging and contentious feud between Tesla and the SEC. After accusing Musk of violating these rules in February 2019, it was agreed that the policy would be modified by establishing a list of topics Musk cannot \u201c<\/span><a href=\"https:\/\/www.wsj.com\/articles\/elon-musk-sec-propose-deal-to-end-latest-court-fight-over-tesla-ceos-tweets-11556314495?mod=article_inline\"><span>communicate without preapproval<\/span><\/a><span>.\u201d\u00a0<\/span><\/p>\n<p><span>\u201cThe list is long but includes many subjects that are typically considered material to investors. He would need preapproval to tweet about a range of topics related to Tesla\u2019s business, such as sales figures, financial projections and new product lines,\u201d the Journal reported at the time.<\/span><\/p>\n<p><span>Then, in July 2019, the SEC contacted Tesla again regarding Musk\u2019s tweet, \u201cSpooling up production line rapidly. Hoping to manufacture ~1000 solar roofs\/week by end of this year.\u201d\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\" readability=\"8.1702127659574\">\n<p lang=\"en\" dir=\"ltr\">Spooling up production line rapidly. Hoping to manufacture ~1000 solar roofs\/week by end of this year.<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1156005185656782848?ref_src=twsrc%5Etfw\">July 30, 2019<\/a><\/p>\n<\/blockquote>\n<p><span>Another letter from the SEC came in May 2020 after Musk\u00a0 tweeted, \u201cTesla\u2019s stock price is too high imo.\u201d<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\" readability=\"6.7428571428571\">\n<p lang=\"en\" dir=\"ltr\">Tesla stock price is too high imo<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1256239815256797184?ref_src=twsrc%5Etfw\">May 1, 2020<\/a><\/p>\n<\/blockquote>\n<p><span>\u201cIn the face of Mr. Musk\u2019s repeated refusals to submit his covered written communications on Twitter to Tesla for pre-approval, we are very concerned by Tesla\u2019s repeated determinations that there have been no policy violations because of purported carve-outs,\u201d the SEC wrote at the time.<\/span><\/p>\n<p><span>As the BBC reported, Musk said he had \u201cno respect\u201d for the SEC, but agreed to the settlement fine \u201cbecause he believed in the justice system.\u201d Musk even publicly mocked the SEC in July 2020, tweeting, \u201c<\/span><span>SEC, three letter acronym, middle word is Elon\u2019s.\u201d<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\" readability=\"8.6363636363636\">\n<p lang=\"en\" dir=\"ltr\">SEC, three letter acronym, middle word is Elon\u2019s<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1278764736876773383?ref_src=twsrc%5Etfw\">July 2, 2020<\/a><\/p>\n<\/blockquote>\n<p><span>As <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/06\/01\/sec-said-elon-musk-tesla-tweets-violated-settlement-agreement-per-wsj.html\"><span>CNBC<\/span><\/a><span> noted, \u201c<\/span><span>Shareholder lawsuits against Tesla and Musk, including the case <\/span><a href=\"https:\/\/www.reuters.com\/article\/us-tesla-sec\/tesla-investor-sues-musk-claims-tweets-violate-sec-settlement-idUSKBN2B42DN\"><span>Gharrity v Musk et al<\/span><\/a><span>, have also pointed to the CEO\u2019s Tweets, and said they caused shareholders and the company financial harm.\u201d<\/span><\/p>\n<p><span>The U.S. Securities and Exchange Commission (SEC) was created following the Wall Street Crash of 1929, and is an independent agency of the federal government responsible for enforcing laws regarding market manipulation.<\/span><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a<\/span><\/i> <a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to an exclusive report by The Wall Street Journal, the SEC accused Tesla and SpaceX CEO, Elon Musk, of ignoring a court-ordered policy in 2019 and 2020 regarding his &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2279022,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1130598318-1200x800-1.jpg","fifu_image_alt":"Report: SEC Slammed Tesla For Failing To Control Elon Musk\u2019s Tweets, According To Uncovered Letters","footnotes":""},"categories":[],"tags":[],"class_list":["post-550467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1130598318-1200x800-1.jpg","fifu_image_alt":"Report: SEC Slammed Tesla For Failing To Control Elon Musk\u2019s Tweets, According To Uncovered Letters","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/550467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=550467"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/550467\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2279022"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=550467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=550467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=550467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}