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

0
101

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…

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here