Tesla CEO Elon Musk gets to decide when his tweets may contain information material to the company or its shareholders, and thus be subject to internal review, based on comments he made on Sunday to "60 Minutes."
Why it matters: Musk and Tesla recently reached settlements with the U.S. Securities and Exchange Commission, after Musk falsely tweeted that he had "funding secured" for a potential buyout of the company, through which new oversight was supposed to be implemented. But Musk told "60 Minutes," "I want to be clear. I do not respect the SEC."
The settlements included a requirement whereby Tesla would employ a securities lawyer to review communications made by company executives via Twitter and other social media. Moreover, the company would:
- But it appears that Musk, not the company, determines when to submit such communications for pre-approval. And if any tweets have been submitted, they have not yet been rejected.
- Tesla and Musk technically had 90 days to implement the oversight rules, so it's possible that things could change within the next month. "60 Minutes" didn't ask, Musk didn't volunteer it, and a Tesla spokesman declined comment. [Update: Tesla now says "the settlement will be complied with in accordance with the 90-day settlement period."]
Musk acknowledged to "60 Minutes" that such a protocol is prone to create yet new problems — for himself, his company and his shareholders — but basically shrugged his shoulders and reminded viewers that he does "not respect" the regulators with whom he settled.
The bottom line: Musk and Tesla are living up to the letter, but not the spirit, of their settlements.
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