The CEO of Tesla, Elon Musk, reached an agreement with the US Securities and Exchange Commission. UU Friday for his use of Twitter, according to a document filed in Manhattan federal court.
The Friday night agreement set new parameters for what Musk can not publish on social networks without the prior approval of a securities lawyer. The list is long but includes a large number of issues about Tesla's business, including its financial condition, earnings and guidance; Mergers or potential acquisitions; production or sales numbers; projections or estimated numbers; or new business lines or proposals not related to existing business lines.
The most recent bout of Musk and the SEC began in mid-February after federal regulators accused him of violating a previous agreement when he tweeted about Tesla's production targets in 2019. The SEC argued that the tweet did not receive prior approvals Necessary stipulations in the previous agreement, as a result of which Musk tweeted abruptly last year that he was considering taking Tesla privately at $ 420 per share.
The regulators alleged that he intentionally cheated investors. Musk paid a $ 20 million fine to settle the case and agreed that his social media interactions should be overseen by Tesla's lawyers. He was also dismissed as chairman of Tesla's board for at least three years.
The new agreement is a victory for Musk, who likely faced heavy fines as a result of the accusations. Elliot Lutzker, a former SEC prosecutor, told FOX Business that regulators could slap Musk with a fine of more than $ 20 million, and possibly even ask him to step down as CEO for up to two months.
Tesla declined to comment on the most recent events. The shares of the electric car maker rose on Friday after trading hours.
US District Judge Alison Nathan has yet to approve the agreement to replace the previous one. Nathan gave Musk and the SEC two weeks to work out an agreement after a federal court appearance.
"The tweet in question was true, unimportant to the shareholders and in no way a violation of my agreement with the SEC," Musk said at the time. "We have always felt that we should be able to resolve any disagreement directly with the SEC, instead of prematurely rushing to the courts."