Elon Musk and SEC Come to Agreement

Elon Musk and the Securities and Exchange Commission have finally came to an agreement that will see the restriction of some of Musk’s comments on Twitter.

The SEC had accused Mr Musk of breaching a court order to not share information which could impact the financial markets, without pre-approval.

Earlier this month, a judge order the commisson to come to an agreement with Tesla and Musk, rather than wasting the court’s time with the matter.

That agreement, which was made available to the public by SEC, adds greater clarity to the restrictions on Mr Musk’s communications, on Twitter or elsewhere.

It states below from the agreement that Mr Musk may not, without approval of Tesla’s legal team, share information about:

  • The company’s financial condition, statements, or results, including company earnings or guidance on its financial future;
  • Any potential or proposed mergers, acquisitions or related business deals;
  • Production numbers or sales or delivery numbers that differ from what the company’s official statements have already stated;
  • Or new or proposed business lines that differ from what the firm does already, which the SEC characterized as “vehicles, transportation, and sustainable energy products”;
  • Details on regulatory findings that have not already been made public.

There has not been a public comment from either Musk or Tesla about the agreement.

This comes after a tweet from Musk that stated that he had more than enough funding to make Tesla a private company which found Mr Musk the subject of the SEC’s ire.

That message – later characterised as being a joke – ended up being extremely costly.

US authorities ordered Tesla and Mr Musk to each pay a $20m (£15.2m) fine and forced Mr Musk to relinquish his role as chairman for three years.