It turned out that the US Securities and Exchange Commission (SEC) once again received a warning from Tesla due to Musk’s tweets. The agency reported that Elon Musk violated the court-ordered policy in 2019 and 2020.
It turned out that Tesla received another warning from the SEC about using Twitter by Elon Musk, who received serious criticism, especially with his tweets about cryptocurrencies. Still, the issue is not cryptocurrencies, Tesla’s roof solar system project. According to the records of the Wall Street Journal obtained by the SEC, it was stated that the SEC specifically warned about the volume and stock price of this project.
He admitted it after a fraud investigation in 2018.
As it will be remembered, the SEC’s fraud case was also in question in 2018 regarding price manipulation, and it was finally decided to sanction the sharing of Elon Musk’s tweets after the Tesla company was approved. At that time, both Musk and Tesla company denied all allegations on the subject, but they also accepted this sanction.
Solar system tweet grabs SEC’s attention.
After the agreement between the SEC and Tesla, Musk’s tweets started to increase again at that time, which caught the SEC’s attention.
“We are rapidly expanding the production line,” Musk said on July 29, 2019. We hope to produce around 1,000 solar system roofs per week by the end of this year,” he tweeted. According to the SEC, this tweet had to be approved by Tesla management and its lawyers. Because, in the previous sanction, it was stated that talking about production and order figures were also dependent on this condition. According to the report, in May 2020, the SEC informed Tesla that the company failed to implement the procedures and controls established for Musk’s use of Twitter.
“Tesla shares are too high,” Elon Musk said.
On May 1 last year, Musk had another tweet that caused a reaction and caused Tesla shares to fall:
This tweet also caught the attention of the SEC, but Tesla lawyers stated that it was just a personal statement of opinion. The SEC also sent a stern warning letter to the company after this tweet.Share this article