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Won't revisit settlement with Tesla despite Musk's 'mocking' tweet: US SEC

Musk and Tesla settled the charges against them without admitting or denying the SEC's allegations

Reuters 

Elon Musk
File photo of Tesla Motors Inc Chief Executive Elon Musk

The chairman said on Monday that the agency would not revisit its securities fraud settlement with Inc despite Chief Executive Elon Musk's tweet mocking the regulator.

Jay Clayton appeared to be unaware of the Oct. 4 tweet describing the SEC as the "Shortseller Enrichment Commission," when CNBC anchors read it to him on Monday.

"He said that?" Clayton asked, declining to comment further. "As far as I'm concerned, that matter is settled."

and Musk agreed in September to pay $20 million each to settle SEC charges over Musk's tweets on Aug. 7 that said he was considering taking private and had secured funding for such a deal.

Musk and Tesla settled the charges against them without admitting or denying the SEC's allegations.

The settlement requires him to be more restrained on Twitter, prompting speculation that the agency could review the agreement after Musk's Oct. 4 tweet which came hours after a federal judge ordered him and the SEC to justify their settlement. Shares of the electric carmaker fell as much as 4 percent after that tweet.

"I think it was an appropriate settlement; one that sent a message to the marketplace, letting CEOs know that if they speak, they need to speak accurately," Clayton said.

First Published: Tue, November 27 2018. 20:27 IST
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