Per Yahoo Finance
Elon Musk needs to get lawyer approval before tweeting Tesla-related info, per SEC
2/24/2023
Elon Musk still needs to get approval from his lawyers before he says anything related to Tesla on Twitter. According to the US Securities and Exchange Commission, this is because of an earlier settlement agreement between Musk and the agency.
Per a recent letter, the SEC maintained that the agreement is valid and fully constitutional. The agency renewed its stance through the letter to the US Court of Appeals for the 2nd Circuit in New York.
Previously, Musk tweeted, "funding secured," saying he would take the company private at the price of $420 per share. Investors officially supported this deal. However, this was not a serious statement, prompting an SEC investigation into potential securities fraud by the Tesla CEO, per Tech Crunch.
Tesla and Musk decided to settle and paid $20 million in fines each. This resulted in the Tesla CEO stepping down as the chairman and agreeing to run Tesla-related posts by a lawyer before tweeting them.
Alex Spiro, Musk's lawyer, gave a statement regarding how the tweets of the Tesla CEO did not violate Rule 10b-5 and how the argument holds up. It was noted that the SEC lacked support.
Spiro: "In light of the jury finding that Mr. Musk’s tweets did not violate Rule 10b-5, the SEC lacks support both for the consent decree itself and for its arguments on appeal,"
Recently, Musk announced that Tesla has decided to make California its new global engineering headquarters. Now, the company's main headquarters is still located in Austin, Texas.
Musk noted that Tesla was actually a "California-Texas company" or rather a "dual-headquartered" company. However, he did say that California should be more careful regarding taxes and regulations.
When it came to Twitter, the CEO shared a huge announcement, saying that the algorithm will become open-source soon. Musk also referred to his purchase of the company as being the "largest non-profit" acquisition in the world.
See flow at unusualwhales.com/flow.
Other News:
- Elon Musk has said that Tesla’s, $TSLA, is making California their new global engineering headquarters.
- Elon Musk has said that Twitter's algorithm will be made open source next week
Resources:
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