Tesla: Elon Musk’s Twitter Blocks May Violate SEC Rules

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Elon Musk’s tweet Tuesday announcing that he was “considering taking Tesla private” may have been illegal—but not for the reasons many people think.

Using Twitter to disclose such crucial market-moving information may seem unorthodox. But the platform has been a bonafide channel for investor communication since 2013, when the Securities and Exchange Commission blessed social media as a valid disclosure method—as long as companies gave investors a heads-up they would post it there.

Tesla complied with this requirement a few months later, directing investors, in a November 2013 earnings press release, to “please follow Elon Musk’s and Tesla’s Twitter accounts” for additional information.

Since then, though, Tesla’s CEO has developed a habit that could undermine the company’s good standing with the law, according to a former…

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