Tesla Received Second Subpoena From US SEC Over Elon Musk’s 2018 Go-Private Tweets

The US SEC issued a subpoena in November last year related to a settlement requiring Elon Musk’s tweets on material information to be vetted.

By Reuters | Updated: 25 July 2022 17:40 IST

Tesla Received Second Subpoena From US SEC Over Elon Musk’s 2018 Go-Private Tweets

Musk had in 2018 settled a lawsuit by the regulator over his go-private tweets

Highlights

Tesla has received a second subpoena from US SEC
It is in connection with CEO Elon Musk’s 2018 tweets
Elon Musk's 2018 tweets were about taking the company private

Tesla has received a second subpoena from the US Securities and Exchange Commission over its Chief Executive Elon Musk's tweets in 2018 about taking the company private, the electric automaker disclosed in a regulatory filing on Monday. The company said it received the subpoena on June 13 and will cooperate with the government authorities. The regulator did not immediately respond to a Reuters request for comment. In November last year, the regulator had subpoenaed Tesla related to a settlement that required Musk's tweets on material information to be vetted.

Musk had in 2018 settled a lawsuit by the regulator over his go-private tweets by agreeing to let the company's lawyers pre-approve tweets with material information about the company.

In June, Musk appealed a judge's refusal to end this 2018 agreement with the SEC.

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Separately, Tesla said it has converted about 75 percent of its bitcoin holdings into fiat currency and has recorded an impairment charge of $170 million (roughly Rs. 1,200 crores) related to the asset.

As of June 30, the fair market value of its digital assets was worth $222 million (roughly Rs. 1,700 crore), it said in the filing.

Last week, Tesla asked a US court to dismiss a lawsuit claiming the electric car maker violated federal law by laying off hundreds of workers without advance notice.

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Tesla in a filing in federal court in Austin, Texas, where the company is based, said the workers who were terminated signed valid agreements to bring employment-related legal disputes in arbitration and to refrain from participating in class-action lawsuits.

Even if the case remained in court, it should be dismissed because the company was merely "right-sizing" by firing poorly performing workers and not engaging in layoffs that require advance notice, Tesla said.

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