Elon Musk Has Messed Up With SEC Again In His Recent Tweets

The Securities and Exchange Commission is not happy about Elon Musk, again. And this time, Tesla CEO violated the terms in the agreement between him and the regulatory body, again. On Monday, the Commission released a filing about this matter.

Elon Musk, CEO of Tesla

A while back in 2018, Elon Musk posted a misleading tweet about securing funding for Tesla, causing serious concerns among investors as well as the SEC. After that, SEC drafted the agreement forbidding the CEO from using social media, including Twitter, to spread information that would be considered important to Tesla’s investors or the company itself without prior consent.

The recent move of SEC to hold Tesla CEO in contempt is probably because of his tweets earlier this month. In this series of tweets, Musk says that in 2019, Tesla will manufacture about 500,000 cars.

Due to this news from the Securities and Exchange Commission, Tesla saw its share price dropped by 4.6 percent during after-hours trading as the filing was publicized.

The automobile company refused to comment on the incident while the SEC did not immediately respond to a comment request.

Musk tweeted that Tesla may make around 500,000 cars in 2019

Recalling the event that led to Musk’s signing an agreement with SEC, on August 7, 2018, Musk wrote a tweet claiming he intended to take Tesla private at $420, and "Funding secured". According to SEC, this tweet was wrong, unjustified and harmful for Tesla shareholders. Elon Musk had to pay $20 million to the US Securities and Exchange Commission (SEC), and he was closed to be forced to step down from his CEO position. However, as we have all learned, Musk has maintained as Tesla CEO ever since.