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Tesla CEO Elon Musk on Friday reached an agreement with the US Securities and Exchange Commission on its use of Twitter, according to a file filed in Manhattan federal court.
The agreement reached late Friday set new parameters for what Musk can not publish on social media without the prior approval of a securities lawyer. The list is long but includes a multitude of topics on Tesla's business, including its financial situation, results and forecasts; mergers or potential acquisitions; production numbers or sales; projections or estimated numbers; or new or proposed business sectors unrelated to already existing business segments.
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Musk and the latest quarrel between the SEC and the SEC began in mid-February after the federal regulators accused him of violating a settlement earlier, when he had tweeted about production targets of the Tesla in 2019. The SEC argued that the tweet had not received the necessary pre-approvals prescribed in the previous settlement – as a result of the fact that Musk had tweeted sharply last year that he was considering privatizing Tesla at $ 420 per share.
Regulators have alleged that he deliberately misled investors. Musk paid a $ 20 million fine to settle the case and agreed to have his social media interactions monitored by Tesla lawyers. He was also removed from his role as Chairman of the Board of Tesla for at least three years.
The new agreement is a victory for Musk, who was probably sentenced to heavy fines following the allegations. Elliot Lutzker, a former SEC prosecutor, had previously told FOX Business that regulators could impose a heavier fine on Musk than the previous $ 20 million – and possibly even ask him to retire as CEO for two months .
Tesla declined to comment on the latest developments. Shares of the maker of electric cars climbed the stock market after normal working hours on Friday.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| TSLA | TESLA INC. | 235.14 | -12.49 | -5.04% |
US District Judge Alison Nathan still has to approve the deal to replace the previous one. Nathan had previously given Musk and the SEC two weeks to draft an agreement after appearing in federal court.
"The tweet in question was true, unimportant for the shareholders and in no way constituted a violation of my agreement with the SEC," said Musk at the time. "We have always thought that we should be able to resolve disputes directly with the SEC, rather than rush to the courts prematurely."
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