The owner of Tesla Inc, Elon Musk, has entered into an agreement with the US Securities and Exchange Commission (SEC) to settle a dispute about the information he publishes on Twitter. In accordance with an application filed on Friday to the Manhattan District Court, Musk agreed to check his public statements about the company’s finances and other business processes.
If approved by the judge, the founder of Tesla will no longer be accused by the SEC of violating the previous agreement, which requires him to obtain investors’ approval for the publication of materials.
So, after the tweet about the Tesla production posted in February, the SEC accused Musk of violating the agreement, and referred the case to the US District Judge Alison Nathan in Manhattan, demanding to accuse Elon of contempt of court.
Tesla made 0 cars in 2011, but will make around 500k in 2019
— Elon Musk (@elonmusk) 20 февраля 2019 г.
At the court hearing on April 4, the judge refused to make a decision on contempt of court and urged the SEC and Musk to find a compromise.
Musk lawyers claim that the February tweet did not contain information that is important to investors and that the defendant does not need prior approval for all Tesla tweets within the established rules.
The new agreement, promulgated on Friday, removes this ambiguity by listing which statements will be vetted. It includes statements about Tesla’s financial condition, potential transactions, performance indicators, forecasts, financing or lending mechanisms and operations with the company’s securities.
The company’s board of directors also has the right to approve additional topics that, in their opinion, do not violate the interests of shareholders.
Musk has been Tesla’s CEO since 2008 and has over 25 million followers on Twitter.
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