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Can the SEC really do this given the content of this tweet? Surely they can’t seek approval for every tweet about Tesla? What if he says he’s driving home from

by jordz 8y ago

Can the SEC really do this given the content of this tweet? Surely they can’t seek approval for every tweet about Tesla? What if he says he’s driving home from “the Tesla factory”. Does this count as a breach if he didn’t seek approval?

simplicio 8y ago
The order was to get approval for tweets that would have "material consequences for investors", so presumably just mentioning Tesla as part of his day to day routine would be fine. But honestly, its not like its that hard to just not tweet about Tesla.
ypzhang2 8y ago
Its about tweeting material information or disinformation about the company. If he's saying he's driving home from the Tesla factory, that isn't material information. Him tweeting that Tesla is going to make 500k vehicles is material information and needs to be vetted by the agreed upon process per the settlement.
javagram 8y ago
Musk and his lawyers agreed to the terms of the settlement. The only reason he had to settle in the first place was because he tweeted false, market-moving information via twitter. Maybe Elon should have considered the consequences then. Why didn’t he just hand over his twitter password to a social media manager and stop tweeting once he lost millions of dollars over the last tweet?
- toomuchtodo 8y ago
  Hubris.
- slouch 8y ago
  Clearly, he doesn't care that much.
- cmurf 8y ago
  Why didn't the lawyers and board require it?
  - sangnoir 8y ago
    The former work for him, and he controls the latter. The "independent" board member Tesla added after signing the agreement was non other than Larry Ellison
lovich 8y ago
Elon specified that this Twitter account is a place to find official Tesla announcements. He could have said it was his private opinions but once he said it was official hes bound by those rules
nopriorarrests 8y ago
Tesla formally said in 2013 that Musk's personal Twitter account was one of the ways "we announce material information to the public about our company, products and services and other issues." https://www.sec.gov/Archives/edgar/data/1318605/000119312513427630/d622890d8k.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312513... For additional information, please follow Elon Musk’s and Tesla’s Twitter accounts: twitter.com/elonmusk and twitter.com/TeslaMotors
Rebelgecko 8y ago
It's only for tweets that are "materially relevant" to Tesla's investors. I don't know if the CEO visiting the factory qualifies as relevant to investors, but any comments about production rates certainly would, since ramping up production seems to be one of Tesla's biggest struggles. The fact that he said something untrue about production rates (overstating previous predictions by 25%) certainly doesn't help.
heavenlyblue 8y ago
His tweet would be more like “I am driving home from factory that is still open at 20:00 and all workers are there”, when it closed at 18:30. Moreover, given his history I am absolutely seeing why a single tweet is enough to start a litigation against him.

by jordz 8y ago

simplicio 8y ago

The order was to get approval for tweets that would have "material consequences for investors", so presumably just mentioning Tesla as part of his day to day routine would be fine. But honestly, its not like its that hard to just not tweet about Tesla.

ypzhang2 8y ago

Its about tweeting material information or disinformation about the company. If he's saying he's driving home from the Tesla factory, that isn't material information. Him tweeting that Tesla is going to make 500k vehicles is material information and needs to be vetted by the agreed upon process per the settlement.

javagram 8y ago

Musk and his lawyers agreed to the terms of the settlement. The only reason he had to settle in the first place was because he tweeted false, market-moving information via twitter. Maybe Elon should have considered the consequences then. Why didn’t he just hand over his twitter password to a social media manager and stop tweeting once he lost millions of dollars over the last tweet?

toomuchtodo 8y ago
Hubris.
slouch 8y ago
Clearly, he doesn't care that much.
cmurf 8y ago
Why didn't the lawyers and board require it?
- sangnoir 8y ago
  The former work for him, and he controls the latter. The "independent" board member Tesla added after signing the agreement was non other than Larry Ellison

lovich 8y ago

Elon specified that this Twitter account is a place to find official Tesla announcements. He could have said it was his private opinions but once he said it was official hes bound by those rules

nopriorarrests 8y ago

Tesla formally said in 2013 that Musk's personal Twitter account was one of the ways "we announce material information to the public about our company, products and services and other issues." https://www.sec.gov/Archives/edgar/data/1318605/000119312513427630/d622890d8k.htm https://www.sec.gov/Archives/edgar/data/1318605/000119312513... For additional information, please follow Elon Musk’s and Tesla’s Twitter accounts: twitter.com/elonmusk and twitter.com/TeslaMotors

Rebelgecko 8y ago

It's only for tweets that are "materially relevant" to Tesla's investors. I don't know if the CEO visiting the factory qualifies as relevant to investors, but any comments about production rates certainly would, since ramping up production seems to be one of Tesla's biggest struggles. The fact that he said something untrue about production rates (overstating previous predictions by 25%) certainly doesn't help.

heavenlyblue 8y ago

His tweet would be more like “I am driving home from factory that is still open at 20:00 and all workers are there”, when it closed at 18:30. Moreover, given his history I am absolutely seeing why a single tweet is enough to start a litigation against him.