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Lawsuit Targets Tesla CEO Musk’s “Unchecked” Tweeting
A new lawsuit filed in Delaware by institutional investors hopes to stop CEO Elon Musk from continuing to tweet inaccurate statements about the company.
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A new lawsuit filed in Delaware by institutional investors hopes to stop CEO Elon Musk from continuing to tweet inaccurate statements about the company.
The complaint cites Musk’s “repeated misstatements” about the company’s production and financial status through his “unchecked use of Twitter,” Bloomberg News reports. The suit asserts that Musk has ignored efforts to reign in his use of social media to make—and eventually walk back—untrue statements about Tesla.
A year ago Musk tweeted that he might take the company private and had secured the funding to do so. He later admitted that wasn’t true. The result was $40 million in fines levied by the U.S. Securities and Exchange Commission and a settlement that stripped him of the Tesla chairmanship and a requirement that he submit to board oversight before firing off tweets.
Last month Musk ignored the sanction by grossly overstating Tesla’s production target for 2019. Now he faces SEC sanctions that could include new fines and more restrictions on his behavior.
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