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Elon Musk must abide by agreement, US SEC says

Tesla Inc Chief Executive Elon Musk should stick to his 2018 agreement to get advance approval for certain of his Twitter use, top US securities regulator said on Tuesday.

 

The US Securities and Exchange Commission also rejected Musk’s ‘substantively meritless’ move to dismiss a subpoena for records related to his Twitter poll last November on whether to sell some of his Tesla stock in a filing in federal court in Manhattan.

 

Musk’s lawyer did not respond to a request for comment.

 

The SEC claims that Musk deceived investors on August 7, 2018, when he tweeted that he had ‘financing secured’ to potentially take his electric vehicle firm private at a premium, when a buyout was not imminent.

 

Musk and Tesla reached an agreement in which each paid a $20 million civil punishment and Musk resigned as Tesla’s chairman.

 

Musk was required to acquire pre-clearance from Tesla lawyers for tweets and other public statements that could be material to his company under the terms of the consent decree.

 

Musk has accused the Securities and Exchange Commission of pestering him with ‘ad hoc and unrestrained’ investigations in an attempt to micromanage and punish him for criticising the government and expressing his fundamental right to free speech.

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