The SEC and Elon Musk Have Finally Settled Their Dispute


 
 
06:31 04/28/2019

For months Wall Street has been reading about the discord between the Securities and Exchange Commission and Tesla's TSLA  CEO Elon Musk.

The two have finally reached some kind of compromise.

Musk and the SEC have made a deal over the electric vehicle maker CEO's public tweets about his company.

According to an amended filing in U.S. District Court of the Southern District of New York, Musk reached a tentative agreement with the agency where he will not discuss Tesla's finances without a lawyer's approval first.

As part of the deal, Musk will not tweet or otherwise disseminate information about Tesla’s finances, production numbers or certain other information without consent from an attorney.

The deal must now be approved by a judge.

The filing has the following items listed in regards to what Musk needs permission from the attorney to discuss:

the Company’s financial condition, statements, or results, including earnings or guidance;

potential or proposed mergers, acquisitions, dispositions, tender offers,or joint ventures;

production numbers or sales or delivery numbers (whether actual, forecasted, or projected) that have not been previously published via pre-approved written communications issued by the Company ( “Official Company Guidance”) or deviate from previously published Official Company Guidance;

new or proposed business lines that are unrelated to then-existing business lines (presently includes vehicles, transportation, and sustainable energy products);

projection, forecast, or estimate numbers regarding the Company’s business that have not been previously published in Official Company Guidance or deviate from previously published Official Company Guidance;

events regarding the Company’s securities (including Musk’s acquisition or disposition of the Company’s securities), credit facilities, or financing or lending arrangements;

nonpublic legal or regulatory findings or decisions;

any event requiring the filing of a Form 8-K by the Company with the Securities and Exchange Commission, including:

- a change in control; or
- a change in the Company’s directors; any principal executive officer, president, principal financial officer, principal accounting officer, principal operating officer, or any person performing similar functions, or any named executive officer; or
such other topics as the Company or the majority of the independent members of its Board of Directors may request, if it or they believe pre-approval of communications regarding such additional topics would protect the interests of the Company’s shareholders;

 

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