Elon Musk criticizes the supervision of the SEC: "Something is broken"



[ad_1]

SEC target Elon Musk; Discover the new Peeps

Morning Business Outlook: The Securities and Exchange Commission claims in a paper that Tesla's founder, Elon Musk, violated a settlement when he tweeted in February his company's production targets for 2019; just in time for Easter, Peeps will now be available in new flavors.

Tesla CEO Elon Musk criticized the US Securities and Exchange Commission in a tweet on Tuesday, a day after the federal agency claimed it violated a settlement when it tweeted in November. February about the 2019 production goals of the electric car manufacturer.

"Something does not work with SEC surveillance," he wrote.

Musk and the SEC settled their securities charges in October, months after tweeting sharply in August that he was considering privatizing Tesla at $ 420 per share and that he had already secured financing (Tesla's stock climbed by more than 10%).

MORE FOXBUSINESS.COM …

Under the terms of the settlement, an independent person has replaced Musk, who will not be eligible for reelection for the next three years, as president of the company. Tesla also had to appoint two new independent directors to its board, in addition to putting in place controls to oversee Musk's communication. Tesla and Musk were also fined $ 20 million each.

In documents filed by the federal government, the SEC accused Musk of violating these conditions when he had tweeted that Tesla would produce 500,000 cars in 2019, a figure he would later have said would come closer. The SEC determined that the initial tweet had not been approved by Tesla before it was sent, depending on the file.

In response, Musk said the SEC "forgot to read Tesla's earnings report," citing the company's fourth-quarter earnings call, in which it told investors that the production of the model 3 would reach 500,000 "between the fourth quarter of 2019 and the second quarter of 2020.." However, the SEC argued that there was no "pre-approved written communication" that Tesla would produce 500,000 vehicles by the end of 2019.

This is not the first time that Musk and the SEC have clashed: in October, the eccentric billionaire mocked the agency by calling it a "short sellers' enrichment commission".

CLICK HERE TO GET THE FOX BUSINESS APP

[ad_2]
Source link