Elon Musk and the Securities and Exchange Commission have reached an agreement over the Tesla CEO's use of Twitter. The agreement lays out exactly what kind of information disseminated by the company, or its CEO, requires formal legal review, before being shared. The new oversight process is now required for the company’s blog, statements made on investor calls, as well as through social media posts.
The agreement stems from a tweet by Musk in August that claimed funding was secured to take the company private at $420 per share—violating a previous agreement that Musk was supposed to seek approval before tweeting material information about Tesla. The tweet initially sent the company’s stock price soaring more than 5 percent, and the SEC asserted that Musk never sought approval for the announcement.