Tesla and Musk Accuse US Securities and Exchange Commission of Endless, 'Unrelenting' Harassment
© AP Photo / Susan Walsh
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The tech maverick has had a strained relationship with the government agency since 2018 when Musk’s joke about Marijuana Holiday on social media resulted in a lawsuit against Tesla, which resulted in the company and its chief executive to pay $20 million each, and Musk had to step down as chairman of the board of directors for three years.
Elon Musk and Tesla have accused the US Securities and Exchange Commission (SEC) of "endless" and "unrelenting" harassment, the US media reported citing a court filing. The paper filed by lawyer Alex Spiro says the SEC continues to target both the entrepreneur and his company because Musk remains "an outspoken critic of the government".
"The SEC’s outsized efforts seem calculated to chill his exercise of First Amendment rights rather than to enforce generally applicable laws in an even-handed fashion", Spiro wrote, adding that the SEC is reportedly ignoring its commitment to distribute the $40 million it received in fines from Musk and Tesla and instead is "devoting its formidable resources to endless, unfounded investigations".
The news of the filing comes more than a week after Tesla announced that it had received a subpoena from the SEC in November 2021. The document was related to the previous settlement both sides struck, under which Tesla was required to settle a monitoring system, which would vet Musk’s statements on the company be it on social (Twitter) or other media.
The 40 Million Dollar Tweet
He may be the world’s richest individual, but just like ordinary people Elon Musk likes to spend some time on social media, where he at present has 74 million followers. The tech maverick frequently updates his followers about achievements of his companies (SpaceX, Tesla, Boring Company). When he is not doing that, he posts memes and jokes, which sometimes cause trouble both for him and Tesla. In 2018, he joked about taking Tesla private on Marijuana Holiday (420), which is celebrated on 20 April.
Twitter screenshot
© Photo
The tweet sent Tesla’s shares oscillating, while Musk himself never took the company private. SEC didn’t like the entrepreneur’s joke and accused it of violating securities laws. A lawsuit followed, which resulted in the settlement between the government agency and Tesla. The company and Musk each paid $20 million in fines. Musk also stepped down as chairman of the board of directors for three years and agreed to have statements he intends to make about Tesla vetted.
In November 2021, Musk tweeted about selling 10 percent of his Tesla stock, which again sent the company’s yo-yo-ing.
This is not the only run-in between Tesla and the federal agency. Last December it became known that the SEC opened an investigation into the leading electric car-maker after a complaint from a whistleblower. Former field quality manager Steven Henkes claimed that the company failed to notify shareholders and the public about the risks associated with its solar panels that could cause fires.
In November 2021, Musk tweeted about selling 10 percent of his Tesla stock, which again sent the company’s yo-yo-ing.
This is not the only run-in between Tesla and the federal agency. Last December it became known that the SEC opened an investigation into the leading electric car-maker after a complaint from a whistleblower. Former field quality manager Steven Henkes claimed that the company failed to notify shareholders and the public about the risks associated with its solar panels that could cause fires.
In addition to that, the company faces several lawsuits on racial abuse, sexual harassment and an investigation into its Autopilot system driver assistance system. They are not related to the SEC.
