Tesla and SEC request more time to reach deal over CEO’s twitter use

Tesla’s Chief Executive Elon Musk and the US securities and Exchange Commission (SEC) have requested a second delay to reach an agreement to settle a dispute over Musk’s use of Twitter.

Tesla Elon Musk Source: Bloomberg

Both Tesla and the SEC said in a court filing on Thursday, that they require a second delay and request to provide the court another joint submission before April 30. The joint submission would indicate their reached agreement and settle a dispute over Musk’s use of Twitter.

It comes after, The SEC in February requested that Musk be found in contempt of a fraud settlement last year after the CEO tweeted details about Tesla production numbers. The tweet was not vetted Tesla’s attorneys.

As a result, the US District court judge Alison Nathan ordered Musk and the SEC to attempt to resolve the dispute outside of court. Both parties had requested an extension to file the agreement, making this their recent request for extension their second request.

The SEC sues musk over tweets

The SEC sued Musk in 2018 for his fraudulent statements after he tweeted on August 7 that he had secured funding to take Tesla private at $420 per share.

The parties later settled, and Musk agreed to step down as chairman and have the company's lawyers pre-approve all written communications, including tweets.

Musk's lawyers have argued that the February tweet did not contain new information.

Musk seeks more capital

Musk said on Wednesday that the company needed to pull in more capital after the company revealed a $700 million loss in the first quarter.

The loss reflected the company’s $920 million debt in its first quarter.

Tesla shares fell on the news, as investors priced in what it would cost the company.
Tesla shares are already down more than 20% this year.


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