Earlier this month, Elon Musk’s legal representatives attempted to challenge the legitimacy of the US Securities and Exchange Commission (SEC) requirement to coordinate all public statements of its client relating to Tesla’s business with the company’s board of directors and lawyers. The regulator made it clear that this attempt by Elon Musk to loosen control has no chance of success.
Image Source: Tesla
In August 2018, the head of Tesla, as you can remember, announced from Twitter that he intended to buy back the company’s shares at a price of $420 a share, but the deal did not take place, and Elon Musk eventually had to take upon himself the obligation to coordinate all such statements with the company’s lawyers and pay $20 million fine. The company itself was also sentenced to a similar fine, but Musk conditionally compensated for it by buying the company’s shares for a proportional amount. Later, the situation with the voting on the Twitter page in November 2021, where he flirted with the audience on the issue of selling 10% of his shares in the company, came to the attention of the regulator. In any case, he had to implement them in order to exercise the options and pay taxes, but the very entourage of such actions caused discontent with the SEC.
According to the resource Barron’s, the specified state body considered the claims of Musk’s lawyers, who reproached the regulators for persecuting their client and restricting his right to freedom of speech, and also considered such actions to be revenge on the part of the SEC in response to criticism of the department by this billionaire. According to representatives of the organization, Musk’s attempts to cancel the stipulated procedure for agreeing to his public statements not only have procedural violations, but are also not legally justified. According to regulators, the billionaire is still required to provide evidence that he previously agreed his November vote on the sale of shares with the company’s lawyers and the board of directors.
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