Elon Musk, CEO of Tesla $TSLA, reached an agreement with the US Securities and Exchange Commission yesterday that requires the rambunctious executive to receive preapproval from lawyers before tweeting about certain topics. The SEC complained that Musk was in contempt of court after he tweeted about Tesla’s 2019 production goals in February.
Musk and Tesla each paid a $20 million fine last year after the regulator charged Musk with making “false and misleading” statements (tweets) about him potentially taking the company private at $420 per share. Musk’s February tweet, the SEC said, violated a condition of his settlement, which required Tesla lawyers to sign off on any of his statements that could influence the company’s share price. The updated compromise, which now spells out prohibited behavior, still needs a judge’s approval, but for a Twitter $TWTR power user like Elon, it’s sure to dampen his style.
He won’t be allowed to tweet—or otherwise publicly share information—about Tesla’s financial performance, production schedule, or projections without adult supervision (i.e., an experienced securities lawyer). Communication about earnings reports, potential acquisitions, sales numbers, and even new business lines will all require preapproval. The agreement could even put an end to Musk’s online antics, like Tesla’s recently announced quiet, electric leaf blower. (Likely a joke.) Future pranks will probably be branded as Boring Company or SpaceX to avoid the SEC’s scrutiny.
In light of the new restrictions, I’ve put together a list of things that Musk is still allowed to tweet about freely. Hopefully this can soften the blow.
