Why Tesla Is In Trouble With The SEC Again Amid Elon Musk’s War With Biden
Tesla (TSLA) has received another subpoena from the Securities and Exchange Commission over CEO Elon Musk’s tweets, the electric carmaker revealed Monday.
The subpoena came in November and was disclosed in the company’s annual filing.
The subpoena follows a tweet that Musk posted in November that asked his 73 million followers if he should sell 10% of his stake in Tesla to pay his taxes, which he said in December was over $11 billion.
Tesla’s stock dipped 16% in the next two trading days following the tweet from Musk about selling his shares, Bloomberg reported.
It is unclear from Monday’s Tesla filing what prompted the second SEC subpoena.
In 2018, Musk settled a lawsuit brought by the SEC over a tweet where he said he was thinking about taking Tesla private. He agreed to a settlement where he would have company lawyers preapprove his tweets related to the carmaker.
Musk also stepped down as chairman of the board, appointing two new independent directors, with Tesla and Musk each agreeing to pay a $20 million penalty.
Adding fuel to the fire is Musk’s recent feud with the Biden administration as he claims that President Joe Biden fails to recognize Tesla as an EV maker, instead turning his focus on Ford and GM in the electric car industry.
In a recent post, Musk tweeted, "For reasons unknown @potus is unable to say the word 'Tesla.' "
Musk has also attacked Biden by calling him a “damp sock puppet” in a tweet to one of his fans in January.
Musk was not on the list of attendees for a January meeting of tech and auto companies hosted by Biden which included Ford’s and GM’s CEOs, Reuters reported.
Tesla has also been under the microscope by regulators for its driver-assist software.
The automaker issued two recalls last week. One was related to its Full-Self Driving feature and its ability to come to a complete stop at stop signs and the other for a seatbelt safety issue.
Musk has a net worth of $239 billion, according to the Bloomberg Billionaires Index. He is considered the richest person in the world.
As of Monday at 10:56 a.m. ET, shares of Tesla were trading at $922.24, down $1.08, or 0.12%.
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