Elon Musk has accepted more specific supervision in his tweets about Tesla. After weeks of negotiations, Musk and the Securities and Exchange Commission decided on Friday that Musk should have a company lawyer who previously approves tweets about Tesla's financial health, sales or delivery numbers, whether estimated or no, as well as other specific issues, according to New presentation before the court.
The two parties filed an application on Friday night to amend the agreement reached last year for the "secured financing" debacle, which originally led the SEC to try to install oversight of Musk's tweets. US District Court Judge Alison Nathan, who presided over the case, still needs to approve Friday's amendment.
According to the submission, Musk now needs the Tesla securities attorney to pre-approve any public and written communications containing information on:
- Tesla's financial situation, statements or results, including profits or guidance
- possible or possible mergers, acquisitions, dispositions, public offerings or joint ventures
- production, sales or delivery numbers (actual or estimated) that have not been shared, or that differ from the official Tesla guide  new business lines or proposals not related to existing Tesla businesses (defined in the presentation as "vehicles, transportation and sustainable energy products)
- changes in the status of securities, credit services or financing agreements / Tesla loan
- non-public legal or regulatory findings or decisions
- anything that requires pres application of an 8-K form with the SEC, including changes in the control of the company, or its executive director and directors
- any other issue than Tesla, or the majority of its independent members of the company's board of directors , believe that you need prior approval
. This change to the agreement agreement came after, on February 19, in Musk tweeted Tesla would make "around" 500,000 models 3 this year. This clashed with the company's official guide of 360,000 to 400,000 automobiles in 2019 (including Model S and Model X).
Musk corrected himself with a tweet a few hours later, but the SEC took this opportunity to ask Tesla for proof that he was complying with the agreement. The agency discovered that Musk did not have or in fact, none of his tweets about Tesla was previously approved by the in-house lawyer since the agreement went into effect in December.
On February 25, the SEC requested that Musk be held in contempt of court for allegedly violating the agreement. Musk and the SEC spent the next few weeks presenting scathing answers, with Musk saying the SEC was attempting an "unconstitutional takeover," and the agency said Tesla's CEO was in "flagrant violation" of the agreement.
Finally, Judge Nathan called Musk and the SEC to the court on April 4 for a hearing in which he ordered them to settle things. "Breathe," he said that day, "[and] come back with your reasonable pants."
Tesla's CEO originally had problems with the regulatory agency last September after he tweeted in August that he was considering taking Tesla privately once the company's stock reached a price of $ 420. (Tesla has been a company which has been listed since 2010.) Musk said on Twitter that he had "insured funds" to carry out the agreement and buy from shareholders who did not want to keep the company. He published these tweets during the afternoon while the trade was still happening, and the stock price of the company soared in response.
The SEC quickly began an investigation into Musk's tweets. Ultimately, the commission discovered that, while it had held some meetings with Saudi Arabia's sovereign wealth fund, Musk "had never discussed a private transaction at $ 420 per share with no potential source of funding, had not done anything to Investigate if it would be possible for all current investors to remain with Tesla as a private company through a "special purpose fund", and had not confirmed the support of Tesla investors for a possible private and private transaction. . "
"Musk's tweets caused market chaos and hurt Tesla's investors," prosecutors said.
The SEC approached Musk with an agreement at the end of September that he finally rejected.On September 28, the SEC accused Musk of securities fraud in the Southern District of New York for his "false and deceptive tweets" "Two days later, the two parties reached an agreement. Musk was forced to resign as president of Tesla for three years, pay a fine of $ 20 million and agree to grant an in-house attorney the oversight of any public communication about the company, including its tweets, that could affect the stock price. of Tesla (and, in turn, its shareholders).
One thing we learned in March when the two sides fought over whether Musk should be despised is that, in the original agreement that the Tesla CEO rejected, the SEC wanted all of its public communications to be examined: material or not. This was a point of conflict for Musk, and the language was finally softened in the version of the agreement he accepted.
Friday's presentation brings the language to what the SEC originally sought. Musk will now be subject to supervision of a number of specific issues related to Tesla, but it will not need to approve all weird tweets about the company.