Elon Musk’s Tesla Tweets Twice Violated Court-Ordered Policy: SEC

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The Securities and Exchange Commission (SEC) told Tesla that Twitter activity from the firm’s CEO, Elon Musk, twice violated a court-ordered policy requiring his tweets to be approved by company lawyers, per The Wall Street Journal.

Musk often tweets about crypto, but here, the SEC was specifically concerned with tweets about Tesla’s solar roof production volumes and its stock price.

In May 2020, the SEC told Tesla that the company had “failed to enforce these procedures and controls despite repeated violations by Mr. Musk.”

“Tesla has abdicated the duties required of it by the court’s order,” the SEC’s letter added. Senior SEC official Steven Buchholz also signed the letter.

SEC eyes Tesla tweets
The requirement for Musk’s tweets to be pre-approved by Tesla was an enforcement action the SEC applied to the company in the wake of the 2018 fraud investigation. Source