Science

Tesla Sued Again Over Elon Musk’s Tweets in 2018

Earlier this week, Tesla shared that it received another subpoena from US Securities and Exchange Commission (SEC) regarding CEO Elon Musk’s 2018 tweets. In particular, we’re still talking about Musk’s infamous “Tesla going private” tweet and his response.

The CEO basically said he plans to take Tesla private, adding that he already has funding in place. However, according to the SEC, the funding was never secured, and Musk’s tweet, like many others, rocked the markets, which is a problem.

Meanwhile, according to Musk, the funding was secured from the start and the SEC knew about the details but still forced him to execute a deal he didn’t believe in.

In any case, the SEC just took Tesla to court in November 2021 over this situation. Musk’s original deal with the SEC required him to have a “Twitter nanny” of sorts. Essentially, in order to settle the lawsuit, Musk had to agree to having his tweets reviewed before he could release them, just in case he chose to tweet information that could be considered material.

Most recently, Musk challenged the judge’s decision not to end the nanny deal on Twitter. This action shed additional light on a situation that has been going on for several years. In addition, Musk continues to tweet information that can be considered material, which is contrary to the original agreement with the SEC.

Shortly before the November 2021 subpoena, the Tesla CEO posted a poll on Twitter for his followers asking if he should sell 10% of his Tesla shares to pay taxes. He made it clear that he would abide by the results of the poll. There is no doubt that the tweet had a noticeable impact on Tesla stock as well as related stocks.

With all this, on Monday, July 25, 2022, Tesla announced that it received another…

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.