Elon Musk Tweets Cause Tesla Investors To Sue, SEC Get Angry

A number of Tesla investors are suing company chief executive Elon Musk over his recent tweets.

Bloomberg reports that a handful of institutional investors in the electric automaker filed a lawsuit in Delaware Chancery Court aiming to permanently block Musk’s “unchecked use of Twitter to make inaccurate statements about the company,” a lawyer from the Laborers’ District Council and Contractors’ Pension Fund of Ohio said.

After Musk infamously (and falsely) tweeted that he had the necessary funding to take Tesla private in August last year, the executive reached a settlement with the Securities and Exchange Commission. One of the stipulations of this settlement was for Tesla to oversee all of Musk’s future tweets to ensure they had no impact on the car manufacturer’s stock price.

Musk appeared to defy this settlement in February when he tweeted that Tesla was on track to build 500,000 vehicles this year.

On February 19, Musk tweeted that “Tesla made 0 cars in 2011, but will make around 500k in 2019.” He later corrected that tweet stating “Meant to say annualized production rate at end of 2019 probably around 500k, i.e. 10k cars/week. Deliveries for year still estimated to be about 400k.”

Tesla admitted in a court filing that Musk hadn’t received approval for these tweets, triggering the SEC to ask a federal judge to hold Musk in contempt of violating his SEC settlement.

“Mr. Musk has continually disregarded all efforts to rein in his material misstatements on social media,” attorney for the Laborers’ District Council Michael Barry said about the new suit.

  • SMARTPHONES, THE DUMBING DOWN OF SOCIETY.

    • Rocket

      In this case likely exacerbated by regular use of legal marijuana.

      • Jason Miller

        Obviously didn’t watch the podcast in question, so you are misinformed.

    • Smith

      Tesla is a car, not a smart phone. Twitter is available in other ways that smart phones.

      • I’M GENERALIZING. IT’S IRONIC THAT THEY ARE CALLED SMART BECAUSE THE MORE SMART THEY BECOME THE MORE STUPID PEOPLE LOOK. FALLING OFF CLIFFS TAKING SELFIES OR WALING IN TRAFFIC BECAUSE THEY ARE WATCHING A VIDEO…IN PORTRAIT MODE.
        SITTING ON THE TOILET AT 3AM AND TWEETING INSULTS AT WORLD LEADERS AND YES EVEN MANIPULATING STOCK.
        A REMARKABLE TECHNOLOGY USED IN INCREASINGLY STUPID WAYS.

  • charlotteharry57

    Some doof in my neighborhood wants electrician recommendations from other Tesla owners about installing a garage charge port. I doubt there are any. It was all I could do to keep my fingers off the keyboard.

  • Jason Panamera

    Now, if things get hot, he will just fly away on Mars. Sneaky one…

  • LJ

    Elon Musk’s face looks like a burn victim with skin grafts.

    • Smith

      Pretty big insult to burn victims with skin grafts. I doubt any of them would want to look that bad.

  • Jason Miller

    What about the Cheeto in charge? Someone needs to wrangle him in on his tweets too. What’s not listed in this article is the fact that he was just relaying info that was made public in their earnings statement not long before.

    • Ken Lyns

      Can’t expect hedge fund managers to use common sense like the public and ignore those tweets…

    • Smith

      No he didn’t. Initially he incorrectly stated the information about the business which is misleading and illegal. he was wrong again.

      • Jason Miller

        It was corrected soon after. But someone somewhere has an itch for more money so let’s fine him millions of dollars again just because.

  • Tumbi Mtika

    NEXT OOPSIE👏 👏

  • Daniela Wolf

    Just lock him up in the office….

    • Bo Hanan

      A colleague of mine thinks Elon would make a great James Bond “bad guy.”

    • assassingtr

      I think he already locks himself in the office…

  • Mr. EP9

    This is the exact reason why they said Elon needs to have his tweets monitored and approved in the settlement agreement because they knew he was going to screw up again. And look what happened, he screwed up…..again.

  • MultiKdizzle

    What a salty comment section.

    • HATING TESLA IS “COOL” TO SOME.

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