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Elon Musk And SEC In New Agreement About Discussion Of Tesla’s Finances

Elon Musk And SEC In New Agreement About Discussion Of Tesla’s Finances
An amended filing in U.S. District Court of the Southern District of New York shows that an agreement over his use of twitter has been reached between Tesla CEO Elon Musk and the Securities and Exchange Commission.
The agreement however has to get approved by a judge. The agreement details the exact details about the kind of information that would mandate formal legal review before being shared. This new oversight agreement is now applicable on the company’s blog, statements that are made by the company and Musk on investor calls, and on posts on social media for material information.
The items in the list were laid out in the filing include the financial condition, statements, or results, including earnings or guidance of the company; any potential or proposed acquisitions, mergers, dispositions, tender offers, or joint ventures; and production numbers or sales or delivery numbers that have not been published earlier through pre-approved written communications issued by the Company or is different from those that have been published earlier by the Official Company Guidance.
Other elements include any new or proposed business lines which are not linked to the then-existing business lines; any form of projection, forecast, or estimate numbers related to business of the company which had not been published before in Official Company Guidance or is different from those published earlier by the Official Company Guidance.
It also includes postings related to the company’s securities, credit facilities, or financing or lending arrangements; non-public legal or regulatory findings or decisions and any event that needs the filing of a Form 8-K by the Company.
There were no comments from Tesla over the new agreement.
According to Dan Ives, managing director for equity research at Wedbush Securities, the latest agreement “removes an overhang” for Tesla shareholders. “Some feared the SEC situation was not going to be resolved favorably so this resolution is a sigh of relief for the bulls. Tesla has enough bad news on its plate so this removes one headache for the Street with the focus now core demand and profitability,” he said.
The dispute between the SEC and Musk related to whether the terms of their original deal were violated by Musk through his tweets is settled by this superseding agreement. Under the original agreement, Musk was barred from publishing tweets containing material information about the company without clearance from the company. The SEC had asserted that Musk never sought clearance for any tweet.
The SEC had alleged that the terms of the earlier agreement had been broken by Musk in February through his tweet about the production numbers of Tesla for 2019.
Musk was first pulled up by the SEC last year over allegations that the Tesla CEO and founder had made misleading and fraudulent statements on Twitter. Those allegations were related to a tweet from Musk on August 7 last year in which he had claimed he had “funding secured” for taking Tesla private at $420 per share.

Christopher J. Mitchell

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