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Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

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The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

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The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
TechTesla

Tesla subpoenaed by SEC about complying with Elon Musk settlement

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February 7, 2022, 2:50 PM ET
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Tesla Inc. received another subpoena from the U.S. Securities and Exchange Commission about a subject that keeps coming up: Elon Musk’s tweeting in 2018 that he was considering taking the carmaker private.

The SEC issued the subpoena Nov. 16, seeking information about Tesla’s governance processes and compliance with a settlement reached with the agency in September 2018, the company said in a regulatory filing. Tesla had agreed to put in place controls to oversee Musk’s communications — including his tweets — after the SEC alleged the chief executive officer committed securities fraud by saying he had secured funding for the company to go private.

Musk and the SEC have been at loggerheads ever since. The agency sought to have a judge find the billionaire in contempt of the settlement early the following year when he tweeted about Tesla’s production outlook without getting prior approval. The two sides agreed in April 2019 to amend their agreement by adding specific topics Musk can’t tweet about, or otherwise communicate in writing, without running it by a company lawyer.

Ten days before the SEC issued its November subpoena, Musk took an over-the-weekend Twitter poll asking whether he should sell 10% of his Tesla stake. The carmaker’s shares plunged 16% the following two trading days.

Tesla didn’t elaborate in its filing Monday about what prompted the SEC’s subpoena. Press officials for the agency declined to comment.

Musk’s lawyers said in a court filing last week that his August 2018 tweet declaring that he was considering taking Tesla private was “entirely truthful.” Shareholders claim in a class-action suit pending in federal court in San Francisco that Musk’s tweets cost them billions of dollars in losses. They’re seeking a judge’s ruling ahead of a trial set for May 31 that Musk’s tweets were false statements.

Tesla’s shares rose 1.4% at 9:39 a.m. Monday in New York.

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