Tesla CEO Elon Musk has run into trouble with the Securities and Exchange Commission (SEC) twice in the past year after he tweeted in August that he had lined up a deal to take Tesla private.
The SEC sued Musk over that tweet, arguing that Musk was not as close to acquiring funding for the deal as he indicated. Musk reached a settlement with the agency that required him to step down as the chairman of Tesla’s board of directors for three years, pay a $20 million fine, and receive approval for all future written communications that could be relevant to Tesla shareholders.
But Musk was not chastened by the settlement. In the following months, he lashed out at the SEC, saying he did not respect it. And in February, he tweeted a projection about vehicle production that the SEC says violated the terms of their settlement. The agency asked a judge to hold Musk in contempt of the court that approved the settlement.
Musk and the SEC have spent the past few weeks debating whether or not Musk’s February tweet followed the terms of their settlement.
Here’s what you need to know about Musk and the SEC’s fraught relationship.
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