The United States Securities and Exchange Commission (SEC) says that Elon Musk needs to have Tesla review his tweets about the company and even have lawyers check them.
The regulatory body made the recommendation in a letter to the US Court of Appeals for the Second Circuit in New York which stated:
[The verdict] does not preclude Musk from tweeting accurately about Tesla or other topics but rather requires Tesla to review Musk’s Tesla-related communications before publication, including through Musk’s Twitter feed – a communication channel designated by Tesla for disclosure.
The SEC’s statement was in reference to Elon Musk’s 2019 settlement with the regulator on how the Tesla CEO would use Twitter. Elon Musk then agreed to step down as Tesla chairman for at least three years, with the company paying the SEC $20 million in fines.
Elon Musk Recently Won a Lawsuit Over his ‘Funding Secured’ Tweet
Elon Musk’s tweets have, in the past, landed him in trouble due to the fact that he can easily influence the price of stocks and even cryptocurrencies such as Dogecoin (DOGE).
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
The Twitter owner recently won a class-action lawsuit in which shareholders claimed damages for his 2018 tweets that he was taking Tesla private at $420 after securing funding.
In response to the verdict, Elon Musk Tweeted:
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.Thank goodness, the wisdom of the people has prevailed!
I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.