The US Securities and Exchange Commission (SEC) claims that Elon Musk has violated its settlement with him after the Tesla CEO tweeted information that could have influenced Tesla’s stock price.
On 19 February Musk tweeted: “Tesla made 0 cars in 2011, but will make around 500k in 2019.”
After Musk’s previous Twitter saga, where he said he was considering taking Tesla private and had “funding secured”, he was told to get approval from Tesla before tweeting important company information.
However, the SEC said his latest tweet breaches this agreement, claiming that Musk has “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers”.
As a result of his earlier tweets, Musk lost his position as chairman of the Tesla board – and saw his personal fortune decrease by $1.5 billion.
Musk was able to keep his CEO job provided Tesla implemented procedures to ensure that he didn’t tweet important information again.
Tesla stocks dropped by 3.6% in response to the SEC’s claims.