On Tuesday, according to a Wall Street Journal report:
In the last two years, there have been two tweets by Elon Musk that have run afoul with the US Securities and Exchange Commission agreement, in which how his lawyers should approve some of his posts before he puts them on to social media.
Elon Musk, the CEO of Tesla, has gotten known for his frequent use of Twitter.
Musk’s communication style is not like many other famous CEOs.
He came under attack when he tweeted that he was thinking to make Tesla private in 2018.
He got charged with fraud by the SEC.
Elon Musk accepted the deal from the court to settle his fraud charges.
According to the court deal, Elon Musk’s posts that have information regarding the shareholder material should get reviewed by the lawyers of Tesla.
A few months after, he got called out for going against this court order.
The settlement got modified to include a list of some specific topics that would require Musk to get permission about before tweeting.
The list included various tweets about the financial condition of the company, the number of production, and the latest business lines.
Tesla got notified by SEC about two certain tweets that Musk tweeted from 2019 and 2020.
One of the tweets was was about the solar roof production volumes of Tesla and the second tweet was regarding the stock price of the company.
According to the Dave Michael and Rebecca Elliot Journal report, both tweets did not get the pre-approval that they should have.
The reports do not let us know which tweets were at issue exactly.
However, in July 2019, Musk tweeted that Tesla was thinking to manufacture 1000 solar roofs per week by the end of the year, which raised many questions if he violated the court-agreed or not.
The Journal contained the records that they had gathered.
It included a letter from May 2020, which a Top SEC official in San Francisco Office wrote to Tesla, saying how the company failed to implement the procedures and controls even though they got repeated violations. Furthermore, duties got abdicated, which got required by the settlement order.
It has not gotten clear if the SEC will be taking action against Musk or Tesla because of the tweets that got referenced in the report of the Journal.