Elon Musk has promised to follow Twitter after several scandals related to communication around his Tesla company. But the SEC, the American stock market police officer, believes the billionaire is failing to deliver on his commitments. In accordance with The Wall Street Journal, eHe believes the Tesla boss has twice violated an agreement that requires him to get his tweets approved by Tesla lawyers before publishing them. SEC explains New York Business Daily, sent the documents to the electric vehicle maker in 2019 and 2020, given that two tweets from the company’s boss regarding solar panel production on the one hand and Tesla’s stock price on the other were not confirmed as expected.
In a letter dated May 2020, the SEC ruled that Tesla would not “ applied these procedures and controls despite repeated violations by Mr. Musk.“, The Wall Street Journal reports.
Complaints arising in 2018
Elon Musk’s failures with the SEC date in the summer of 2018. In a tweet posted on August 7, 2018, the entrepreneur mentions his desire to take his group off the stock exchange. “I’m thinking of removing Tesla from the $ 420 list. Funding guaranteed “, he’s writing. A statement that the SEC dislikes.
The regulator believes that this has caused an artificial rally in Tesla shares. ” Mr. Musk’s statements made investors believe he was almost certain he could get Tesla out of the stock market at $ 420 a share. ”then accuses Stephanie Avakian, co-director of the Securities and Exchange Commission’s division.
The SEC fined Elon Musk $ 20 million, as he failed to provide evidence of his statement, and he had to resign as chairman of the board of directors.
The regulator also received that any communication from the superior ” containing or which may contain information that could affect Tesla or its shareholders It is checked by the company’s lawyers before publication.
Musk pumps cryptocurrency prices
The overuse and sometimes reckless use of Twitter, which the Tesla boss regularly calls out, is causing a surge. So in early February, Musk jumped in bitcoin price by inserting #bitcoin into his Twitter bio while announcing that Tesla had bought the cryptocurrency for $ 1.5 billion and will now accept it to pay for its payments. electric vehicles.
But in mid-May, the rowdy leader backed off: he tweeted that Tesla would now abandon Bitcoin payments due to the environmental risk posed by cryptocurrency mining, leading to a drop in the price of Bitcoin.
He also regularly maintains another virtual currency on the social network, dogecoin, a cryptocurrency with a dog as an emblem, created as a joke and has become very fashionable despite the doubts of the financial community. In May, he made Dogycoin jump with a cryptic tweet: ” how much does the doge cost in the window? », A reference to a popular song about a dog.
These statements regularly led various financial experts to accuse him of manipulating cryptocurrency prices with impunity. The Securities and Exchange Commission has stepped aside for now, content to highlight the risk these financial assets pose to investors. But Tesla’s boss would probably have been wise if he hadn’t been overly provocative.