Tesla has revealed that it received a subpoena from the Securities and Exchange Commission (SEC) pertaining to the 2018 settlement it had reached with CEO Elon Musk about his tweets. The settlement had required that the automaker vet all of Musk’s tweets about material information
However, based on recent stock action resulting from his tweets, it’s unclear whether they are being vetted.
Tesla reveals SEC subpoena about Musk tweets
In its annual filing with the SEC, Tesla revealed a subpoena it had received in November about tweets posted by Musk. That month, the Tesla chief triggered a sell-off in the automaker’s stock when he polled his followers on whether or not he should sell 10% of his stake. Bloomberg Law reports that the November subpoena sought details about the automaker’s governance processes and compliance with the 2018 settlement regarding Musk’s tweets.
According to Reuters, Tesla stock was down by about 25% since that November tweet, but in early trading this morning, it’s up by about 2% despite the revelation about the subpoena. Tesla did not elaborate on the most recent SEC subpoena, but it increases the regulatory pressure on it.
The automaker also faces pressure from vehicle safety regulators about recalls and investigations into its driver assistance software.
Tesla sued for allegedly not complying with order
In December, shareholders sued Tesla on allegations that Musk had violated his 2018 settlement with the SEC that required it to vet his tweets. The allegation in that suit pertained to his November tweet about whether he should unload 10% of his stake.
Musk settled a lawsuit filed by the SEC in 2018 over his tweet about potentially taking the automaker private. Under the terms of that settlement, he agreed to have Tesla’s lawyers pre-approve any of his tweets that contain material information about the company.