Elon Musk Tweeting About Tesla’s Business Plans Doesn’t Violate SEC Law
The tweet impacted Tesla’s stock and led to a trading halt, but Musk didn’t violate any rules.
Elon Musk does what he wants — within reason.
The Tesla CEO used Twitter to mull over whether he’ll make his publicly-traded company private, and although the decision to broadcast that bit of information is “unprecedented,” Mashable reports that Musk isn’t violating any rules or laws established by the Securities and Exchange Commission (SEC).
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
“This is something different that we’re not used to seeing,” University of Pennsylvania Law School professor of business law Jill Fisch told Mashable in a phone interview. Fisch explained that Musk used Twitter to share the information in a similar form as a press release — and although it speeds up the customer-investor feedback loop, that’s “something markets have to get used to.”
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