Tesla Inc. : How Elon Musk wants to free himself from the SEC and tweet freely about Tesla

(BFM Bourse) – Elon Musk wants to put an end to the agreement reached with the American stock market policeman when he mentioned a delisting in August 2018, which obliges him to have his tweets directly linked to the activity of Tesla by a competent lawyer.

Elon Musk versus the SEC, new episode. The strained relationship between the whimsical boss and the US stock market regulator (the SEC) kicked off in August 2018, with tweets from the former announcing that he had secured funding for a delisting of Tesla at a price of 420 dollars per share (higher than the price at which the title was then trading). Described as “false and misleading” by the SEC, these tweets had triggered an investigation by the financial policeman, which had led to an amicable agreement between the two parties at the end of 2018, after a new series of unfortunate tweets. This agreement provides in particular that the tweets of the founder of Tesla likely to move the price of Tesla action must now be approved by a competent lawyer before being broadcast.

The boss of the giant of electric vehicles and the richest man in the world, accustomed to controversy on Twitter, asked a New York judge on Tuesday to cancel the agreement concluded in 2018. The SEC seeks to “harass Tesla and to silence Elon. Musk,” said Alex Spiro, a lawyer for the billionaire, in a letter to the judge. The latter explains today that he was “forced” to accept the agreement by the threats of a lawsuit from the SEC.

The 2018 tweet “was written when I was considering taking Tesla off the stock market, that I had the funding and the support of investors,” said the leader in the court filing. “I have never lied to shareholders. I would never lie to shareholders. I agreed to (the SEC deal) for the survival of Tesla, for the benefit of shareholders.” His team blames the SEC for conducting “relentless” investigations into the boss’s tweets for the past four years.

Ongoing investigation into stock sales

Latest feat: Elon Musk last November sold almost $7 billion worth of Tesla stock in one week, one of the largest sales ever seen in such a tight period without the sale not either forced or does not come within the framework of a succession. This was motivated by the result of a Twitter poll in which the boss asked whether or not he should part with 10% of his stake in Tesla. Some 57.9% of the 3.5 million voters responded positively.

According to the the wall street journalthe SEC has opened an investigation to determine whether the fifty-year-old born in South Africa and his brother had not committed insider trading around this sale of shares. The regulator wonders in particular if Elon Musk warned his brother, also a member of the board of directors of Tesla, that he was going to publish this tweet and if Kimbal Musk consequently placed orders, while the result of the poll caused a brief but sharp fall in the title. The SEC did not react immediately to a request from AFP.

(with AFP)

Quentin Soubranne – ©2022 BFM Bourse

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