Elon Musk deleted a tweet in which he hinted that Tesla could become the world’s largest company “in just a few months.”
The SEC could be watching …
Musk’s use of Twitter has come under scrutiny from financial authorities for some time.
Most famously, the US Securities and Exchange Commission (SEC) filed a lawsuit against Musk for his infamous “secured financing” tweet regarding his failed attempt to take Tesla out of the stock market in 2018.
The SEC ruled that Musk was exaggerating when he said the funding was “secured.” Tesla and Musk reached an agreement with the SEC.
As part of the agreement, Musk agreed to resign as chairman of the board, and both Tesla and Musk had to pay fines of $ 20 million each.
The CEO presumably didn’t want Tesla to have to pay for his SEC issue, and while he couldn’t pay Tesla’s portion of the fine directly, he decided to buy $ 20 million worth of Tesla stock.
In that way, he ended up indirectly paying the Tesla fine, though he also ended up with an additional ~ 71,000 Tesla shares in the process.
As we previously reported, Musk ended up making money from the deal due to Tesla’s share price surge last year.
The SEC also asked Tesla to monitor Musk’s use of Twitter so that he did not share material information that could influence the market.
Now the situation is emerging again when Musk tweeted something that could fall into that category.
In our Slack newsroom at Electrek, we have an automatic feed of Musk’s tweets set up. Every now and then, among all the memes you tweet, there are newsworthy items.
Today we woke up to a series of tweets, and the last one was deleted:
Regarding the impact of Tesla’s launch of Full Self-Driving on the automaker’s valuation, Musk said there is a more than 0% chance that Tesla will become the world’s largest company.
This is something you said before and is not important to Tesla’s valuation.
However, someone with the Twitter username @ ToonLa24 replied that they “like the direction of that arrow” in reference to the “plus than” sign that Musk used, and the CEO surprisingly responded with “probably in a few months.”
Many people interpreted the tweet as Musk saying that Tesla could become the largest company in the world in a few months, but that is not clear.
The CEO quickly deleted the tweet under which many people commented that it could be material information and against the SEC order.
Personally, I don’t see any problem here.
Musk believe that Tesla could become the largest company in the world if it solves autonomous driving is not material, it is obvious.
I would even go as far as to say that most people agree that if Tesla suddenly gets its vision-based autonomous driving system using its current hardware, already found in hundreds of thousands of regulator-approved cars, it would probably unlock hundreds of billions in value. .
The question is more whether Tesla can achieve that feat and in what timeline.
Musk has already said that it would happen this year and therefore it would not be surprising if Tesla becomes the largest company in the world this year.
But he’s been wrong about that timeline before, and many people have doubts that it will ever happen.
Either way, I don’t see the SEC going after this one, as it didn’t seem to have any impact on Tesla’s stock anyway.
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