The SEC informed Tesla that CEO Elon Musk’s tweets breached a court decree policy on two occasions in 2020, according to the Wall Street Journal. The decree mandated Musk’s tweets to be pre-authorized by company lawyers.
In 2018, Tesla and the SEC resolved a statutory action alleging a tweet by Mr. Musk about a possible acquisition of his company was fraudulent.
In 2019 and 2020, the SEC informed Tesla that Musk’s tweets about the company’s solar roof production volumes and stock price failed to go through preauthorization.
Past tweets of Musk and confrontations with the SEC are viewed as evading rules or turning away regulation efforts.
Musk’s lawyers have downplayed the SEC’s actions saying they are unfairly targeting the Tesla CEO.
Tesla is currently declining. TSLA: NASDAQ is down 0.30% on pre-market.
