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SEC says social media complies with Reg FD: https://www.sec.gov/news/press-release/2013-2013-51htm https://www.sec.gov/news/press-release/2013-2013-51htm

by whatok 8y ago

thesimon 8y ago
>so long as investors have been alerted about which social media will be used to disseminate such information.
chollida1 8y ago
yes, but only > so long as investors have been alerted about which social media will be used to disseminate such information. and if the stock has been halted for news before you post on twitter. At the very least he violated the later making this a moot point. I can't speak to if Elon's personal twitter account can be used for official Tesla news but it seems pretty suspect.
- whatok 8y ago
  Twitter isn't some esoteric social media platform and Elon has made extensive use of it which has moved the stock. I don't see where disclosures taking place being relevant in 2018 but admit there's not a lot of precedent behind this. Agreed on the halt.
- zaroth 8y ago
  I don’t see anything in the linked SEC page about needing to halt trading before making the post? > Regulation FD requires companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively. It is intended to ensure that all investors have the ability to gain access to material information at the same time. Sounds like Twitter is the perfect mechanism to achieve this in a fair manner. > The report of investigation explains that although every case must be evaluated on its own facts, disclosure of material, nonpublic information on the personal social media site of an individual corporate officer — without advance notice to investors that the site may be used for this purpose — is unlikely to qualify as an acceptable method of disclosure under the securities laws So the question is did Elon/Tesla ever put investors on notice that material statements could be made through his Twitter account? Since it seems like he’s done this regularly in the past. There was even an institution investor that joked about Elon’s “Return on Tweet” and many articles written about Musk’s Twitter habit. I couldn’t say if a long past history of breaking news on Twitter is enough to have put investors on notice that material statements could come through that channel.
  - dchest 8y ago
    >> Regulation FD requires companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively. It is intended to ensure that all investors have the ability to gain access to material information at the same time. > Sounds like Twitter is the perfect mechanism to achieve this in a fair manner. What about investors that were blocked by Elon on Twitter?
    - nodesocket 8y ago
      This is a fair point, if you are blocked then you don't have fair access to information. Though I have a suspicion that people who Elon blocks have multiple Twitter accounts.
      - badwolf 8y ago
        Or know how to open incognito browsers.
        tedunangst 8y ago
        "Investors in Tesla should know to regularly check Musk's twitter with an incognito browser" doesn't seem like a defense the SEC will actually appreciate. Knowledge of incognito browser function is not a requirement to purchase stock.
- surrealize 8y ago
  > so long as investors have been alerted about which social media will be used to disseminate such information. They have been: > Item 8.01. Other Events. > Tesla Disclosure Channels To Disseminate Information ... > For additional information, please follow Elon Musk’s and Tesla’s Twitter accounts: twitter.com/elonmusk and twitter.com/TeslaMotors https://www.sec.gov/Archives/edgar/data/1318605/000119312513427630/d622890d8k.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312513... from the BBC piece here: https://www.bbc.com/news/business-45105674 https://www.bbc.com/news/business-45105674
  - seldon999 8y ago
    Thank you for posting facts and sources. Refreshing.

SEC says social media complies with Reg FD: https://www.sec.gov/news/press-release/2013-2013-51htm https://www.sec.gov/news/press-release/2013-2013-51htm

by whatok 8y ago

SEC says social media complies with Reg FD: https://www.sec.gov/news/press-release/2013-2013-51htm https://www.sec.gov/news/press-release/2013-2013-51htm

thesimon 8y ago

>so long as investors have been alerted about which social media will be used to disseminate such information.

chollida1 8y ago

yes, but only > so long as investors have been alerted about which social media will be used to disseminate such information. and if the stock has been halted for news before you post on twitter. At the very least he violated the later making this a moot point. I can't speak to if Elon's personal twitter account can be used for official Tesla news but it seems pretty suspect.

whatok 8y ago
Twitter isn't some esoteric social media platform and Elon has made extensive use of it which has moved the stock. I don't see where disclosures taking place being relevant in 2018 but admit there's not a lot of precedent behind this. Agreed on the halt.
zaroth 8y ago
I don’t see anything in the linked SEC page about needing to halt trading before making the post? > Regulation FD requires companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively. It is intended to ensure that all investors have the ability to gain access to material information at the same time. Sounds like Twitter is the perfect mechanism to achieve this in a fair manner. > The report of investigation explains that although every case must be evaluated on its own facts, disclosure of material, nonpublic information on the personal social media site of an individual corporate officer — without advance notice to investors that the site may be used for this purpose — is unlikely to qualify as an acceptable method of disclosure under the securities laws So the question is did Elon/Tesla ever put investors on notice that material statements could be made through his Twitter account? Since it seems like he’s done this regularly in the past. There was even an institution investor that joked about Elon’s “Return on Tweet” and many articles written about Musk’s Twitter habit. I couldn’t say if a long past history of breaking news on Twitter is enough to have put investors on notice that material statements could come through that channel.
- dchest 8y ago
  >> Regulation FD requires companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively. It is intended to ensure that all investors have the ability to gain access to material information at the same time. > Sounds like Twitter is the perfect mechanism to achieve this in a fair manner. What about investors that were blocked by Elon on Twitter?
  - nodesocket 8y ago
    This is a fair point, if you are blocked then you don't have fair access to information. Though I have a suspicion that people who Elon blocks have multiple Twitter accounts.
    - badwolf 8y ago
      Or know how to open incognito browsers.
      - tedunangst 8y ago
        "Investors in Tesla should know to regularly check Musk's twitter with an incognito browser" doesn't seem like a defense the SEC will actually appreciate. Knowledge of incognito browser function is not a requirement to purchase stock.
surrealize 8y ago
> so long as investors have been alerted about which social media will be used to disseminate such information. They have been: > Item 8.01. Other Events. > Tesla Disclosure Channels To Disseminate Information ... > For additional information, please follow Elon Musk’s and Tesla’s Twitter accounts: twitter.com/elonmusk and twitter.com/TeslaMotors https://www.sec.gov/Archives/edgar/data/1318605/000119312513427630/d622890d8k.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312513... from the BBC piece here: https://www.bbc.com/news/business-45105674 https://www.bbc.com/news/business-45105674
- seldon999 8y ago
  Thank you for posting facts and sources. Refreshing.