Tesla’s Chief Executive Officer, Elon Musk and the United States Securities and Exchange Commission have continued their verbal attack amid a settlement dispute which Musk was accused to have violated with a tweet.
The US Securities and Exchange Commission had informed the court to hold Elon Musk in contempt for violating a settlement deal reached last year. According to SEC, the billionaire published a projection tweet that wasn’t approved by his company.
Nairametrics learnt Musk tweeted on February 19 that “Tesla made 0 cars in 2011, but will make around 500k in 2019.” Hours later, Musk sent a follow-up tweet correcting the earlier post, disclosing the company will actually deliver just 400,000 cars this year.
“ONCE AGAIN PUBLISHED INACCURATE AND MATERIAL INFORMATION ABOUT TESLA TO HIS OVER 24 MILLION TWITTER FOLLOWERS,” SEC was QUOTED AS SAYING.
Both Elon Musk and SEC in 2018, had resolved to an agreement that Musk must always receive pre-approval of any social media posts with information that’s “material” to shareholders, with Tesla agreeing to establish a board committee to oversee those posts.
In his defence, Tesla said Musk post was based on information the company made public 20 days earlier during its January 30 earnings call with Wall Street analysts, adding that Musk did not receive pre-approval for his posts, but the company claimed that he didn’t need it, a court filing stated.
After SEC legal action against Musk, the CEO has now reacted to the accusation while responding to a tweet from a Twitter user.
Elon Reeve Musk is a technology entrepreneur and engineer. He holds South African, Canadian, and U.S. citizenship and is the founder, CEO, and lead designer of SpaceX; co-founder, CEO, and product architect of Tesla Inc.; co-founder and CEO of Neuralink; founder of The Boring Company; and co-founder of PayPal.
Tesla Inc. is an American automotive and energy company based in Palo Alto, California. The company specialises in electric car manufacturing and through its SolarCity subsidiary, solar panel manufacturing.