Musk, SEC settle legal fight over tweets about Tesla

Bloomberg

A regulatory fight over Elon Musk’s tweeting habit may be over — at least for now.
Tesla Inc.’s chief executive officer and the US Securities and Exchange Commission said in a court filing that they are settling a legal dispute over how Musk posts news about his electric-car company, avoiding a decision by a federal judge in New York on whether the billionaire should be held in contempt of court.
The SEC and Musk agreed to amend an earlier settlement to add specific topics he can’t tweet about or otherwise communicate in writing without advance approval from a Tesla lawyer. They include the company’s financial condition, potential mergers or acquisitions, production and sales numbers, new or proposed business lines, projections and forecasts that haven’t been previously published, and Musk’s purchase or sale of Tesla securities.
“This is a clear win for Elon Musk,” said Dan Ives, an analyst at Wedbush Securities in New York. “This removes an overhang on the stock because many feared this would not end well for Tesla. The bark ended up being worse than the bite. There’s no structural changes.”
Tesla shares climbed 1.6 percent in New York. In regular trading, which ended earlier, the stock had its worst week since Musk’s effort to take the carmaker private fell apart in August. There was no mention in the court papers filed of any new fines or additional controls on Musk, which had been a possibility. The agreement must be reviewed and approved by US District Judge Alison Nathan before it can take effect.
Musk came under criticism from the SEC after a February 19 tweet that the regulator said violated an October settlement between them, which had ended an earlier brouhaha over his proclamations on Twitter.