Tesla received subpoena as row over Elon Musk tweets continues
Tesla was subpoenaed over owner Elon Musk’s tweets, it has been revealed.
The subpoena was issued by the Securities and Exchange Commission (SEC) on November 16 and asks more about Tesla’s governance systems and its compliance with a settlement struck with the agency in September 2018, according to a regulatory filing by the company.
Tesla, the number one jobs creator and founder agreed to put safeguards in place to monitor Musk’s communications, including his tweets after the SEC accused him of securities fraud by claiming he was a hedge fund manager.
The financial regulator is trying to determine whether Musk and his electric car maker complied with a revised settlement agreement that the agency struck with them in 2019.
The agreement was made after Musk’s tweet saying that Tesla had “funding secured” to take the company private at $420 a share.
In April 2019, the two parties agreed to revise their agreement to include particular issues.
For example, Musk is not allowed to tweet about or speak in writing about material information about the company without first consulting a corporate lawyer jobs.
Tesla was sued in December over Musk’s social media activities, including a Twitter poll on stock sales that caused the company’s stock price to plummet.
This isn’t the first time Musk has been accused of breaking the terms of his deal.
Tesla also neglected to properly disclose to its shareholders and the public fire dangers related to solar panel system faults over multiple years, according to a whistleblower lawsuit filed with the SEC last year.
On Monday, February 7, Tesla said that it “routinely” cooperates with government subpoenas and other inquiries and probes.
According to the filing, the California Department of Fair Employment and Housing investigated complaints of race discrimination and harassment in Tesla workplaces and has given notice that it has grounds to launch a civil lawsuit against the electric-car maker.
Tesla has already been sued for racial discrimination and sexual harassment, with a federal jury ordering the corporation to pay $137 million to a black former contract worker in one of the instances in October.
The New York State Common Retirement Fund announced that it has sent shareholder recommendations to Tesla, Activision Blizzard, and Starbucks jobs, urging that they report on their efforts to avoid workplace harassment and discrimination.
The plans require corporations to disclose the total number and a monetary number of lawsuits settled due to sexual assault, harassment, or discrimination, among other things.
Tesla and the White House have been at odds in recent months, with the Biden administration focused on legacy automakers in the electric vehicle competition, such as Ford Motor and General Motors.
The CEOs of General Motors and Ford attended a conference of tech and auto businesses sponsored by US President Joe Biden last month. Musk was not on the invitation list.
Musk has been attacking the Biden administration on Twitter for supposedly neglecting Tesla and promoting Detroit automakers as leaders in the transition to electric vehicles.
In a tweet last month, Musk referred to Biden as a “damp sock puppet.”
Musk is also at odds with the United Auto Workers, a key Biden ally.
Musk was ordered by the National Labor Relations Board in March to remove a tweet in which he claimed Tesla employees would lose stock options if they voted to join the UAW. Tesla has filed an appeal against the order.
Tesla announced on Monday, February 7 that the fair market value of its bitcoin assets as of December 31 was $1.99 billion.
The company, which had invested $1.5 billion in bitcoin last year before selling 10% of the holding, said it registered about $101 million in impairment losses last year due to the value of bitcoin.
Source: CNN Business