The Tesla founder is as popular as he is controversial.
(Foto: imago images/Future Image)
New York Tesla boss Elon Musk wants to overturn a regulation in court, according to which some of his tweets must first be approved by the electric car pioneer’s lawyers. The requirement agreed with the US financial regulator SEC in 2018 restricts his freedom of speech, Musk argued in an application in New York on Tuesday. Literally it means that his right hand is “stepped on.”
In the past, Musk had repeatedly clashed with the SEC over his statements. After several disputes, in September 2018 he committed to having market-moving tweets approved. However, there is disagreement as to which tweets fall under these regulations.
The ongoing dispute started with a series of tweets from 2018 in which Musk announced that he had the money and investor support to take Tesla public at a price of $420 per share. The SEC claimed the tweets were false statements. In the end, it was agreed to set up a $40 million investor compensation fund, filled by Musk and Tesla, but there is renewed dispute over its use.
Over the years, the SEC has compiled a whole series of what it considers critical tweets. In 2019, for example, Musk tweeted about Tesla’s production prospects without prior approval. In April 2019, both sides agreed to define at least certain topics that the Tesla boss can only tweet about with legal approval.
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The SEC is also currently investigating stock sales by Musk’s brother Kimbal. Kimbal Musk sold Tesla shares days ahead of a Twitter poll his brother pledged to sell a larger stake. The Tesla price then plummeted. Musk denies any wrongdoing.
He also asked the court on Tuesday to block an SEC document request related to the controversial tweets. The supervisor initially did not comment on the process.
Musk has long felt unfairly treated by the SEC. As recently as late February, a US district judge denied a court hearing into his attorneys’ allegations that the SEC was conducting a “harassment campaign” against him. He didn’t start the fight with the agency, “but I will end it,” Musk said on Twitter.
Musk once fired the press department of the electric car pioneer in a coup and took over the public relations almost single-handedly via Twitter. He is very active there and always responds to questions from Tesla stock owners and market observers. His humor is considered original by some followers, and unpredictable by others. It remains to be seen whether his latest venture will be crowned with success.
More: US Securities and Exchange Commission is considering Tesla stock sales by Elon Musk and brother Kimbal