Businessman and entrepreneur Elon Musk is a longtime fan of the Twitter social networking platform. In a current article on the CNN website, however, it is reported that two of the Tesla CEO’s older Twitter tweets have breached an agreement he made with the U.S. Securities and Exchange Commission (SEC).
Tweets Under Review
Because he tweeted in 2018 that he was thinking about making Tesla a private company, Elon Musk was charged with fraud by the SEC. The case was settled with a court requirement that any of Musk’s social media posts that contain information relevant to Tesla’s shareholders be reviewed by the company’s attorneys.
Within a few months of his settlement with the SEC, Musk was said to be disobeying the commission’s order. This resulted in the SEC compiling a list of certain topics that must be approved before Musk can refer to them in tweets.
Among the topics that Mr. Musk now needs official permission to post tweets about are Tesla’s new products, number of cars being produced or financial status.
The CNN article explains that Tesla has been contacted by the SEC in regard to two Twitter tweets posted by Musk in 2019 and 2020. One of the tweets concerned the cost of the company’s stock, and the other mentioned the number of solar roofs being produced by Tesla.
According to the Wall Street Journal, one of Musk’s tweets from July 2019 announced that Tesla was striving to produce 1000 solar roofs every week, within a year.
Requirement Not Enforced
A letter that the SEC sent to Tesla in May 2020 stated that the company did not enforce the requirement that Musk’s tweets be reviewed.
At this point, it’s uncertain if the tweets mentioned in the Wall Street Journal will lead to the SEC penalizing either Mr. Musk or the Tesla company.
When Musk was charged with fraud in 2018, efforts were made by the SEC to have Musk removed from his leadership positions at Tesla. Although he did not admit or deny any misbehavior, Musk resigned as Tesla’s Chairman, but stayed on as the company’s CEO.