Elon Musk, SEC Reach Agreement: Musk is Further Muzzled on Tweets

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The SEC asked the court to find Musk in contempt over their previous agreement. Instead, Musk is further muzzled.

Reuters reports Tesla's Musk agrees to new vetting rules for tweets in SEC deal.

Tesla Inc Chief Executive Elon Musk has reached a deal with the U.S. Securities and Exchange Commission to settle a dispute over his use of Twitter, agreeing to submit his public statements about the company’s finances and other topics to vetting by its legal counsel, according to a court filing on Friday.

If it is approved by a judge, the deal means the Tesla founder no longer faces the prospect of being held in contempt for violating an earlier settlement with the agency, which had required him to submit statements “material” to investors for prior review.

The new agreement, disclosed in a filing in Manhattan federal court, lays out in more detail exactly what kinds of statements must be reviewed.

“It could really have turned out far worse for him,” said Stephen Diamond, a professor of securities law at Santa Clara University. “The consequences of thumbing his nose at the SEC could have been far worse for him and the company.”

Restricted Tweet Topics

  • Statements about Tesla’s financial condition
  • Proposed or potential deals, production numbers
  • Performance projections
  • Financing or lending arrangements
  • Musk’s own transactions in the company’s securities.
  • Additional topics as determined by the company’s board of directors

How long before Musk violates these rules? What about another forum such as Linked-In?

Mike "Mish" Shedlock

Comments (8)
No. 1-5
Six000mileyear
Six000mileyear

Someone (family member?) could post about these forbidden topics on Musk's behalf. The agreement has a loophole so large a Tesla SUV could drive through it.

Stuki
Stuki

Because, when privileged Humpty Dumpties in totalitarian, financialized dystopias; tell their well indoctrinated underlings they should cheer for Dear Leader for "giving" them "freedom of speech"; "freedom of speech" can mean exactly that which the privileged twits want it mean at any given time.

abend237-04
abend237-04

The SEC has revealed it's true nature as a voting machine in this fiasco. A celebrity has successfully, openly defied them and won. So much for their charter and the damage done by this pathetic enforcement action.

EconomicCrashDummy
EconomicCrashDummy

It's a bizarre world. They have to treat Presidents and CEO's like children.

KidHorn
KidHorn

Does the SEC really mean it this time?