Sign up to receive 5 free days of our daily summary for tech news.

Join us for just $10/month for our analysis of Facebook's new cryptocurrency announcement on 6/18.
Autonomous Vehicles Markets Policy

Musk Agrees to Have Tweets Approved by a Lawyer

In a tentative settlement with the Securities and Exchange Commission on Friday, Tesla CEO Elon Musk agreed—again—to have his tweets and other statements about the company’s finances reviewed by a lawyer before making them public.

While it appears the SEC didn’t win the contempt citation it had asked for, the agreement—which still needs to be approved by a judge—puts the famously shoot-from-the-lip Musk on a shorter leash when it comes to talking about Tesla’s business. Under the agreement, Musk is required to “obtain the pre-approval of an experienced securities lawyer” at Tesla for any written communication about the company’s financial condition, proposed mergers, acquisitions and joint ventures, among other issues.

The SEC went to court in the matter after Musk tweeted in February that Tesla would deliver 500,000 vehicles this year, which he later corrected to say it would only hit 400,000. This round in court expands an earlier settlement over Musk’s incorrect tweet last year that he was considering taking the Tesla private and had “funding secured” to do so. Tesla shares rose about 1% in after hours trading after the latest agreement became public. 

0 Subscriber comments


Sign up for our weekly newsletter and 5 complimentary days of our daily tech news roundup.

Already a subscriber? Log in here