Stock exchange - Musk wants to get rid of oversight over his X contributions to Tesla
Tesla CEO Elon Musk is going all the way to the US Supreme Court to get rid of the controls imposed in 2018 on his social media posts about the electric car manufacturer. The agreement with the US Securities and Exchange Commission (SEC) at the time violated his constitutional right to freedom of expression, Musk's lawyers argued in their petition.
The tech billionaire has already failed in two court instances in his attempts to overturn the requirement. It remains to be seen whether the Supreme Court will deal with the case. The already extended deadline for an application expired yesterday.
The SEC had enforced that Musk should first have his posts on the short message service Twitter about Tesla, which could have an impact on the car manufacturer's share price, approved by the company. Musk bought Twitter in October 2022 and has since renamed the platform X.
Background
The regulation was triggered by Musk's tweets from August 2018, when he wrote on Twitter that he was considering delisting Tesla from the stock exchange. "Financing secured", he added. This sentence later sparked a lot of controversy, as it turned out that there were no written commitments from investors.
The SEC accused Musk of misleading investors and, in addition to supervising his tweets, also forced him to relinquish the chairmanship of the board of directors. Musk and Tesla also each paid a fine of 20 million dollars.
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- Despite the regulatory actions taken by the SEC, Elon Musk, the CEO of Tesla, purchased Twitter and renamed it X in October 2022.
- The US Securities and Exchange Commission (SEC) had imposed controls on Musk's social media posts about Tesla in 2018, following his tweets about potentially delisting the company from the stock exchange.
- The court battles over Musk's attempts to overturn these controls have taken place on the US stock exchange supervision sec's watch.
- Tesla's stock price fluctuations on the exchange can be impacted by Musk's tweets on X, as the SEC had mandated that these posts should be approved by the company beforehand.
- The SEC charged Musk with misleading investors in August 2018, following his controversial tweets about Tesla's financing, and subsequently forced him to relinquish his role as chairman of the board and both Musk and Tesla each paid fines of 20 million dollars.
Source: www.stern.de
