US SEC to seek sanctions against Elon Musk in Twitter probe, reports Reuters

The US Securities and Exchange Commission (SEC) is reportedly planning to seek sanctions against Tesla CEO Elon Musk in an ongoing probe related to his use of Twitter. According to a report by Reuters, the SEC is looking to take action against Musk for allegedly violating a previous settlement agreement that required him to have his tweets about Tesla pre-approved by company lawyers.

The probe stems from a tweet Musk posted in February, in which he claimed that Tesla would produce around 500,000 vehicles in 2019. The SEC has argued that Musk’s tweet was misleading and violated the terms of the settlement agreement reached last year after Musk tweeted that he had secured funding to take Tesla private, a claim that turned out to be false.

The news of potential sanctions against Musk comes as the SEC has increased its scrutiny of executives’ use of social media to disclose information about their companies. The agency has previously warned that social media posts by executives can be considered material information and therefore subject to securities laws.

Musk has been a controversial figure on Twitter, often using the platform to make bold statements about Tesla and other ventures. His tweets have landed him in hot water with regulators in the past, and it appears that he may be facing consequences once again.

It remains to be seen what specific sanctions the SEC will seek against Musk, but the news is sure to have a significant impact on both Tesla and Musk himself. Investors will be watching closely to see how this latest development plays out and what it could mean for the future of the electric car company.