Elon Musk Makes Tesla Agreement Over His Twitter Account
Mike Sanders / 1 year ago
Elon Musk Agrees Twitter SEC Deal
Last year, Elon Musk got into rather a lot of trouble when he suggested that he was planning on taking his car company, Tesla, private. For those of you unfamiliar with the history or term, this effectively meant that he was going to buy enough shares to take the company out of public ownership.
While this in itself was rather shocking, there were two factors that escalated this into more dangerous territory. Firstly, he decided to make the announcement via his Twitter account. Secondly, it was all just a joke. A joke, however, that played a significant role in the short-term share price of the company.
This was a major breach of business rules in America and, as such, the security exchange committee (SEC) got involve and slapped Elon Musk with a pretty hefty fine and required him to step down as company chair for at least 3 years.
Part of the initial agreement term also required Elon Musk (well, specifically Tesla’s new chief) to ensure that he did not post anything on his social media accounts about the company. Specifically, anything that could affect how the business operates.
It’s been pretty clear, however, that he has made a number of posts giving pause for thought since this requirement of him was made.
In a report via the BBC, however, following a new agreement with the SEC, Elon Musk finally has his ‘Twitter Tesla Rules’ in place.
As part of the agreement, Elon Musk must now follow the following rules regarding his social media comments. Put simply he may not (without the permission of Tesla) disclose or speak about:
- The company’s financial condition, statements, or results. Including company earnings or guidance on its financial future
- Any potential or proposed mergers, acquisitions or related business deals
- Production numbers or sales or delivery numbers that differ from what the company’s official statements have already stated
- Or new or proposed business lines that differ from what the firm does already, which the SEC characterized as “vehicles, transportation, and sustainable energy products”
- Details on regulatory findings that have not already been made public.
The only real question at this point is will he stick to these rules? Somehow, I have my doubts!
What do you think? Are these rules fair? Do you think he will follow them? – Let us know in the comments!