Earlier this week, Tesla shared that it received yet another subpoena from the US Securities and Exchange Commission (SEC) related to CEO Elon Musk’s tweets from 2018. More specifically, we’re still talking about Musk’s infamous “taking Tesla private” tweet and reply.
The CEO basically said he was planning on taking Tesla private, adding that he already had the funding secured. However, according to the SEC, the funding was never secured, and Musk’s tweet, much like many others, caused markets to move, which is an issue.
Meanwhile, according to Musk, the funding was secured all along, and the SEC was aware of the details but still coerced him to comply with a deal he didn’t believe in.
At any rate, the SEC just subpoenaed Tesla in November 2021 over the situation. Musk’s original deal with the SEC forced him to have a “Twitter sitter” of sorts. Basically, to settle the lawsuit, Musk had to agree that his tweets need to be looked over before he can publish them, just in case he decides to tweet out information that could be considered material.
More recently, Musk appealed a judge’s decision not to bring an end to the Twitter sitter agreement. This action brought further light to the years-old situation. Moreover, Musk has continued to tweet information that can be seen as material, which goes against the original agreement with the SEC.
Not long before the November 2021 subpoena, the Tesla CEO tweet out a survey to his followers asking if he should sell 10 percent of his Tesla stock to pay taxes. He made it clear that he would abide by the results of the poll. There’s little doubt the tweet had a notable impact on Tesla’s stock, as well as related stocks.
With all of that said, Tesla just disclosed on Monday, July 25, 2022, that it had received yet another related subpoena from the SEC. A Tesla filing noted that the company received the subpoena back on June 13, 2022. Tesla added that it plans to cooperate with the SEC. Reuters wrote that the SEC declined to provide a comment on the matter.