Home / NewTech / Elon Musk says the SEC oversight is "broken" after the Tesla Tweet

Elon Musk says the SEC oversight is "broken" after the Tesla Tweet

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Elon Musk is not satisfied with the SEC.

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Tesla boss Elon Musk used Twitter on Tuesday against the Securities and Exchange Commission, one day after the agency chastised him for sharing corporate information on the social media platform.

On Monday, the SEC had Moschus contemptuous after tweeting about Tesla's projected production volume in 2019 and saying he had violated the terms of an agreement. The agency had prohibited him from using Twitter or any other social media to provide information that could be considered material without the prior consent of investors or Tesla.

The SEC's call called for a sell-off of Tesla shares, which dropped by as much as 4.6 percent in trading after hours. The stock's downturn prompted Twitter commentators to announce that the SEC was moving the markets, not Musk's tweets.

"Exactly, that happened several times now," wrote Musk wrote on Twitter. "Something is broken by the oversight of the SEC."

He replied with another "Exactly" when someone else noticed that the information that Musk had tweeted this had already done in the fourth quarter of the company's profit and announced in a letter to shareholders.

Musk has a Twitter employee, an experienced securities attorney at Tesla, who is responsible for auditing his communications. The Minder is known as the Designated Securities Counsel, a position created after earlier SEC lawsuits against the company and Musk.

Wall Street analysts plunged into the collision on Thursday, bringing investors hope and hesitation.

Maynard Um of Macquarie Capital pointed out that the SEC is likely to expect resolute action from Tesla's board of directors. The company does not see "a significant risk of changing the role of Mr. Musk at Tesla".

But that does not mean that everything is good.

"This new legal headache for both Elon Musk and Tesla," wrote Jeffrey Osborne at Cowen Equity Research, "represents a negative distraction for a company that needs to execute at this critical juncture." Cowen continues to see "big risks" given company valuation, cash requirements and other factors.

On Tuesday afternoon, Tesla shares rose about 1 percent to around $ 301.50.

The SEC, Tesla and Musk did not respond to requests for comment.

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Originally posted on February 26, 9:53 pm PT
Update, 1:57 pm : Adds information to Musk's Twitter moderator.

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