The SEC notified Tesla that two of Musk’s tweets from 2019 and 2020 — one about Tesla’s solar roof production volumes and one about the company’s stock price — hadn’t received the required pre-approval, the Journal’s Dave Michaels and Rebecca Elliott reported.
The Journal cited records it had obtained, including a May 2020 letter written to Tesla by a top SEC official in the agency’s San Francisco office saying that the company had failed “to enforce these procedures and controls despite repeated violations by Mr. Musk” and that Tesla had “abdicated the duties” required by the settlement order.
It’s unclear whether the SEC will take action against Tesla or Musk because of the tweets referenced in the Journal’s report. After Musk was charged in 2018 — before he agreed to the settlement — the SEC initially sought to remove Musk as CEO and chairman of Tesla. He ultimately agreed to step down as chairman but remained CEO, while not admitting or denying wrongdoing.
The SEC and Tesla did not immediately respond to a request for comment from CNN Business. They also did not respond to the Journal’s requests for comment.
Tesla’s stock took a sharp dip in after-hours trading following the report, but by around 7 pm ET, it was down less than 0.5%.