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SEC letters claim Tesla failed to oversee Elon Musk's tweets: Report

US securities watchdog told Tesla Inc last year that Elon Musk's use of Twitter had twice violated a settlement requiring his tweets to be preapproved by company lawyers

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Tesla | Securities and Exchange Commission | Twitter

Reuters 

His $156.9 billion net worth still places him No. 2 on the Bloomberg Billionaires Index

(Reuters) - U.S. securities watchdog told Inc last year that Chief Executive Officer Elon Musk's use of had twice violated a settlement requiring his tweets to be preapproved by company lawyers, the Wall Street Journal reported on Monday.

The U.S. had ordered the electric car maker to vet any material public communications Musk made regarding Tesla, following Musk's August 2018 tweet that he had "funding secured" to possibly take private in a $72 billion transaction.

In correspondence sent to in 2019 and 2020, the SEC said tweets Musk wrote about Tesla's solar roof production volumes and its stock price were not preapproved by Tesla's lawyers, the Journal reported, citing records of communication that have not been previously reported.

"Tesla has abdicated the duties required of it by the court's order," the WSJ reported, citing a letter signed by a senior SEC official.

The SEC and Tesla were not immediately available for comment.

 

(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, June 02 2021. 06:32 IST
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