Tesla subpoenaed by SEC over Elon Musk tweets

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Tesla has once again been subpoenaed by the Securities and Exchange Commission over CEO Elon Musk’s Twitter habits.

This past November, the SEC sought “information on our governance processes around compliance” with a September 2018 settlement between the company and the regulatory agency.

The subpoena was issued just 10 days after Musk triggered a stock sell-off when he asked his Twitter followers if he should sell 10% of his stake in the company.

Tesla’s stock price dipped by some 16% over the course of the two days of trading which followed the tweet.

Last week, The Post exclusively revealed that Musk insisted his tweet about a 2018 buyout of Tesla was “entirely truthful.”

In a filing in the US District of Northern California, Musk laid out his version of events leading to his Aug. 7, 2018, tweet that sparked a firestorm on social media — and a rap on the knuckles from federal regulators:

“Am considering taking Tesla private at $420. Funding secured,” Musk tweeted that day.

Tesla is being sued in federal court by shareholders who allege that Musk’s tweet cost them billions of dollars in losses.

Tesla company logo
In 2018, Musk and Tesla were forced to pay $40 million in fines to the SEC over the CEO’s tweet about possibly taking the company private.
AP

The SEC and Tesla both declined to comment. Shares of Tesla were trading slightly below its opening stock price Monday morning.

The number “420” is code for smoking marijuana.

As part of the settlement between Tesla and the SEC, Musk agreed to step down as chairman and to appoint independent members to the company’s board of directors.

He also agreed to pay $20 million while the company kicked in another $20 million in fines.

The SEC said Musk agreed to “establish a new committee of independent directors and put in place additional controls and procedures to oversee [his] communications.”

Tesla CEO Elon Musk
Musk is being sued in federal court by investors who say they’ve lost billions of dollars because of his Twitter habits.
REUTERS

But Musk’s Twitter habit nearly landed him in hot water with the SEC again. The next year, the agency asked a judge to hold Musk in contempt after tweeting about Tesla’s production outlook without getting permission.

Musk and the SEC then agreed to amend their prior settlement by adding topics that the CEO is banned from tweeting about.

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