Elon Musk now has a specific set of rules about what he can’t tweet without first getting permission from a company attorney.
The Tesla CEO and the Securities and Exchange Commission reached a deal last October saying he needed to get prior approval from a securities lawyer to tweet any information “material to the company” that could move its stock.
Musk’s behavior since that settlement indicated he wouldn’t be reined in by the deal. His lawyers argued the terms of the agreement were ambiguous.
After asking a judge to hold the Tesla CEO in contempt, the SEC and Musk struck a new deal late last week that lays out in more detail what kind of written statements, including those on social media, he must get approved before posting. The deal was approved Tuesday.
Here is what Musk can’t tweet about without a Tesla lawyer’s permission:
1. The company’s financial condition, statements, or results, including earnings or guidance
Musk has tweeted many times about the company’s financial condition, including a rather bizarre April Fool’s joke about the company filing for bankruptcy.
More serious tweets about the company’s financial condition included a tweet explaining that the company couldn’t make the long-promised $35,000 version of the Model 3 because Tesla would “lose money & die.” He said it was crucial to increase revenue by making the more expensive versions of that car first.
2. Potential or proposed mergers, acquisitions, dispositions, tender offers or joint ventures
This is the type of tweet that got him in trouble with the SEC in the first place. In August of 2018 he tweeted that he had “funding secured” to take the company private at $420 a share.