Elon Musk Says US Securities Regulator Forced Settlement Over Tesla Tweets

Elon Musk and Tesla had to pay a $20-million (roughly Rs. 152 crore) fine to the SEC.

By Reuters | Updated: 15 April 2022 10:30 IST

Elon Musk Says US Securities Regulator Forced Settlement Over Tesla Tweets

Photo Credit: Reuters

Musk said he felt forced to settle with the SEC

Highlights

I was forced to admit that I lied to save Tesla's life: Musk
Musk recently launched $43 billion cash takeover offer for Twitter
Musk rejected an invitation to join Twitter's board last Saturday

Tesla CEO Elon Musk on Thursday stepped up criticism of the US securities regulator, calling Securities and Exchange Commission officials "bastards" for bringing fraud charges against him over his 2018 tweets regarding taking the company private.

On the day he made major news by unveiling a $43 billion (roughly Rs. 3,29,278 crore) cash takeover offer for social media company Twitter, Musk aired his grievances toward the SEC during remarks at the TED Conference in Vancouver.

Musk, the world's richest person according to a Forbes tally, said funding to take his electrical car company private was actually secured at the time he posted his tweets, but the agency "pursued the active public investigation nonetheless."

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

"So I was forced to concede to the SEC unlawfully. Those bastards," Musk told the audience.

Musk said he felt forced to settle with the SEC because banks threatened to cease providing capital if he did not do so, which would have made Tesla bankrupt immediately.

"So that's like having a gun to your child's head," Musk said.

Elon Musk Launches $43-Billion Hostile Takeover of Twitter

"I was forced to admit that I lied to save Tesla's life and that's the only reason," Musk added.

Musk and Tesla each paid $20 million (roughly Rs. 153 crore) civil fines — and Musk stepped down as Tesla's chairman — to resolve SEC claims that Musk defrauded investors on August 7, 2018, by posting on Twitter that he had "funding secured" to take the company private. The SEC said at the time his funding tweets "lacked an adequate basis in fact."

A related consent decree also required Musk to obtain pre-clearance from Tesla lawyers for tweets and other public statements that could be material to Tesla.

A spokesperson for the SEC did not immediately respond to a request for comment on Thursday.

Musk rejected an invitation to join Twitter's board last Saturday after disclosing his current more than 9 percent stake. He was required to have disclosed that he held a stake exceeding 5 percent in Twitter and is expected to invite regulatory scrutiny for missing a deadline to disclose such a stake and filing the wrong form, according to securities experts.

On launching his Twitter takeover bid, Musk said he made the offer because he believes "it's very important for there to be an inclusive arena for free speech." Musk said he believes Twitter's algorithm should be open-source and suggested the code behind it should be available on Github, a Microsoft-owned platform for sharing code for software development.

Asked if he had the financing to do the deal, Musk said: "I have sufficient assets. I can do it if possible." He did not offer details.

Why are they still making more Harry Potter? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.