Elon Musk, SEC reach deal over rules for Tesla CEO's tweeting
Tesla founder Elon MuskElon Reeve MuskPentagon watchdog clears acting Defense chief in ethics probe Tesla to lay off 7 percent of workforce Trouble at Tesla: How the company can survive Elon Musk MORE and the U.S. Securities and Exchange Commission (SEC) filed an agreement in federal court to try to resolve a years-long dispute over the tech tycoon’s public statements about his businesses.
The agreement gives Musk a list of topics about which he must “obtain the preapproval of any experienced securities lawyer” employed by Tesla before posting on Twitter or other social media, according to The New York Times.
The list includes comments about Tesla’s financial condition, earnings forecast, proposed acquisitions and production data as well as remarks on “nonpublic legal or regulatory findings or decisions.”
The SEC cautioned Musk to use caution with his statements on other topics as the agreement says the list “is not intended to be an exhaustive list of topics.”
If ultimately approved, the deal would resolve any attempt by regulators to hold Musk in contempt of court for violating an earlier arrangement.
Judge Alison Nathan of the federal District Court in Manhattan earlier this month ordered Musk and the SEC to draft a deal that more clearly outlines how Tesla lawyers should inspect their boss’s posts.
The billionaire tech entrepreneur and the SEC have had several salvos in their feud over Musk’s public comments. The most recent flare up revolved around a February tweet that said Tesla would produce 500,000 vehicles this year.
Musk later amended his claim to say the company would produce 500,000 in 12 months but deliver 400,000 in 2019.
Musk and the SEC first settled in court in 2017 after the agency brought fraud charges against him after he tweeted that he secured funding to take Tesla private at $420 per share. The settlement required Musk to seek pre-approval for future tweets about the company.