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SEC said Elon Musk's Tesla tweets violated settlement agreement, WSJ reports

Mount Equity Group Tokyo, Japan > News > Tech > SEC said Elon Musk's Tesla tweets violated settlement agreement, WSJ reports

Elon Musk, founder of SpaceX and chief executive officer of Tesla Inc., arrives at the Axel Springer Award ceremony in Berlin, Germany, on Tuesday, Dec. 1, 2020.Liesa Johannssen-Koppitz | Bloomberg | Getty Images

Last spring, the U.S. Securities and Exchange Commission admonished Tesla and CEO Elon Musk for allegedly violating terms of a 2019 revised settlement agreement, according to correspondence first obtained and reported on by the Wall Street Journal.

SEC officials pointed to a tweet on May 1, 2020, in which Musk said that Tesla’s stock price was “too high,” prompting a more than $13 billion decline in the company’s market value, according to the report. The SEC also pointed to Musk tweets from 2019, where he discussed solar roof production numbers without obtaining pre-approvals, the Journal said.

While the securities regulators monitored Musk’s use of Twitter amid the pandemic, and confronted him and Tesla via correspondence, they did not file a motion to compel enforcement of the settlement agreement.

Musk is required to have Tesla-related tweets that contain material company information approved by an attorney before posting them. A so-called “twitter sitter” was part of a revised settlement agreement struck between the SEC, Musk and Tesla. The settlement terms also required Musk