According to data received by the Wall Street Journal on 1st June 2021, Elon Musk twice disobeyed a court order prohibiting him from illegally using Twitter to influence the stock market.
Musk allegedly committed deception by tweeting about a prospective purchase of his firm on 7th August 2018, according to a lawsuit filed by the Securities & Exchange Commission. Musk said that he was contemplating taking Tesla private and had acquired the necessary funds. The Saudi Arabian sovereign wealth fund was said to be the source of money at the time. According to Fortune, Musk is the second-richest person in the world, with a net worth of $156 billion.
Musk's blog post:
He departed the 31st July conference convinced that an agreement with the Saudi sovereign fund could be reached, and that all that remained was to get the process moving. And that is why, in the 7th August statement, he mentioned "financing secured."
The SEC lawsuit was settled for a total of $20 million between Musk and Tesla. The agreement stipulates that Musk's tweets would indeed be reviewed by corporate lawyers without first being released, in addition to him stepping down as CEO.
The SEC warned Tesla on 20th May 2020 that the company had failed “to enforce these procedures and controls despite repeated violations by Mr. Musk.” The letter added, “Tesla has abdicated the duties required of it by the court’s order.”
On 20th May 2020, the Securities and Exchange Commission (SEC) issued a warning to Tesla, saying the firm had failed to implement these policies and controls despite Mr. Musk's repeated violations. Tesla has surrendered the duties expected of it by the court's order,” the letter continued.
