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SEC, Elon Musk reach an agreement about his tweeting

It still need to be approved by a judge.

Bloomberg via Getty Images
Bloomberg via Getty Images
Richard Lawler
Richard Lawler|@Rjcc|April 26, 2019 6:04 PM

Ever since Elon Musk tweeted about taking Tesla private his use of the platform has been troublesome in the government's eyes, but today the CEO reached an amended agreement with the SEC. According to Reuters, if a judge approves the deal then charges of contempt in his earlier settlement will be dropped. It requires that Musk get prior approval from Tesla's legal department when he makes public statements about the company's finances.

In December, Musk told 60 Minutes "I do not respect the SEC" and cited the First Amendment. The SEC sought to hold him in contempt due to a February tweet that overstated how many vehicles Tesla projected to build this year. A copy of the agreement, uploaded by BBC reporter Dave Lee, shows the specific language added that explains:

  • the Company's financial condition, statements, or results, including earnings or guidance
  • potential or proposed mergers, acquisitions, dispositions, tender offers, or joint ventures
  • production numbers or sales or delivery numbers (whether actual, forecasted, or projected) that have not been previously published via pre-approved written communications issued by the Company ("Official Company Guidance") or deviate from previously published Official Company Guidance
  • new or proposed business lines that are unrelated to then-existing business lines (presently includes vehicles, transportation, and sustainable energy products)
  • projection, forecast, or estimate numbers regarding the Company's business that have not been previously published in Official Company Guidance or deviate from previously published Official Company Guidance
  • events regarding the Company's securities (including Musk's acquisition or disposition of the Company's securities), credit facilities, or financing or lending arrangements
  • nonpublic legal or regulatory findings or decisions
  • any event requiring the filing of a Form 8-K by the Company with the Securities and Exchange Commission
  • such other topics as the Company or the majority of the independent members of its Board of Directors may request, if it or they believe pre-approval of communications regarding such additional topics would protect the interests of the Company's shareholder
SEC, Elon Musk reach an agreement about his tweeting