December 5, 2022

SEC backs down after Tesla CEO Elon Musk accuses it of ‘relentless investigation’

Tesla Inc. Elon Musk, CEO of, speaks to members of the media as he leaves the federal court in New York, USA on Thursday, April 4, 2019.

நடன் டிவிர் | Bloomberg | Getty Images

The Securities and Exchange Commission submitted a letter to a federal judge Friday Tesla CEO Elon Musk said the company was involved in “breaking promises” and “conduct”. The amount of harassment After the previous settlement agreement.

In September 2018, SEC Kasturi charged He issued “false and misleading” statements to investors after he announced on Twitter that he was financing the purchase of Tesla at $ 420 a share. Following his tweets, Tesla’s stock went into a period of extraordinary volatility and the deal Musk referred to never worked.

Tesla, Musk and the SEC finally reached an amended settlement agreement to settle the tariffs in 2019.

As part of the deal, Musk had to step down as chairman of Tesla’s board and pay a separate $ 20 million fine. Tesla also had to pay a $ 20 million fine. Musk and Tesla CEO-CEO agreed that the content of his social media posts should be authorized by a securities legal expert who will publish them wherever they contain material business information.

The $ 40 million they paid would then be distributed to Tesla shareholders.

In a letter to the court on Thursday on behalf of Musk and Tesla, attorney Alex Spiro suggested that the SEC was neglecting to pay that $ 40 million to Tesla shareholders.

SEC’s Stephen Bouchals responded Friday that the company was actually making progress on that task, which was very complicated. He noted that Tesla had not previously reported any concerns to the agency and that SEC staff expected to submit a “proposed distribution plan” to the court for approval by the end of March 2022.

Musk’s lawyer, Spiro, suggested that the SEC did not focus on sending money to Tesla because it was too busy investigating and delivering more sapons. The lawyer wrote, “The SEC seems to be targeting Mr Musk and Tesla for relentless investigation because Mr Musk is an outspoken critic of the government.”

Muskin’s fights with regulators are public and confusing, including occasional bad jokes. The CEO has expressed his dissatisfaction with the SEC on several occasions on Twitter October 2018 He called the agency the “Short Vendor Enrichment Commission” July 2020 When he wrote: “SEC, three-letter abbreviation, the middle word is Elon.”

Spyro suggested that the SEC’s current investigation was intended to “cool” Musk’s First Amendment rights.

Recent financial filing for Fourth quarter of 2021, Tesla revealed that it received Sapona from the SEC late last year. The filings stated: “On November 16, 2021, the SEC sent us a sapona requesting information on our administrative processes related to compliance with the SEC settlement, as amended.”

The SEC’s letter to the court on Friday argued that Tesla did not follow proper procedures to challenge any of the sapons provided by the agency as an independent regulator, except for court proceedings.