Elon Musk's demons dredged up with top lawyer's exit, misfired tweet
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If sent by another company executive, the posts might read like an innocuous mistake. But Tesla was supposed to have set up internal controls last year to keep Musk from posting material information about the company without pre-approval. The SEC ordered the electric-car maker to employ or designate a securities lawyer to review Musk and other senior officers’ Twitter communications.
The SEC handed down the punishment after alleging Musk committed fraud by tweeting in August that he had “funding secured” to take Tesla private at $420 a share. The agency said this and other claims the CEO made on Aug. 7 were false and misleading and affected the company’s stock.
Both Musk and Tesla settled without admitting or denying wrongdoing and agreed to pay $20 million in penalties. The company’s board formed a disclosure-controls committee comprised of three independent directors.
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