Apr 26, 2019

SEC and Elon Musk reach agreement over Twitter activity

Elon Musk. Photo: Spencer Platt/Getty Images

Tesla chief executive Elon Musk reached an agreement on Friday with the Securities and Exchange Commission regarding his behavior on Twitter, according to an amended filing in U.S. District Court.

Why it matters: The agreement with securities regulators removes, for now, one headache facing the electric automaker that’s in the midst of a tumultuous stretch and just reported a larger-than-expected quarterly loss on Wednesday.

The backdrop: Last August, Musk took to the social platform, tweeting he had "funding secured," to take Tesla private at $420 a share. In response, the SEC sued Musk, alleging his claims on Twitter were false.

The suit was settled last September, but the SEC sued Tesla's CEO a second time for allegedly violating the terms regarding his Twitter activities of the original agreement. Musk agreed to pay a civil penalty for at least 3 years.

One big question: Whether the notoriously shoot-from-the-hip Musk, who often uses Twitter to communicate Tesla news, will actually abide by the updated terms of his requirements for vetting his communications. He has expressed disdain for the SEC in the past.

Go deeper: Elon Musk to pay $20 million, step down as Tesla chair in SEC settlement

Go deeper

Situational awareness

Photo: Drew Angerer/Getty Images

Catch up on today's biggest news:

  1. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  2. Trump misrepresents 2020 Russia briefing as Democratic "misinformation"
  3. Bernie Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"
  4. Nearly half of Republicans support pardoning Roger Stone
  5. Scoop: Lyft acquires cartop advertising startup Halo Cars

Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"

Photo: Mario Tama/Getty Images

Bernie Sanders told CBS "60 Minutes" that he was surprised by Mike Bloomberg's lackluster performance at Wednesday's Democratic debate.

What he's saying: "If that's what happened in a Democratic debate, you know, I think it's quite likely that Trump will chew him up and spit him out."

Scoop: Lyft acquires cartop advertising startup Halo Cars

Photo: Drew Angerer/Getty Images

Lyft has acquired Halo Cars, a small startup that lets ride-hailing drivers earn money via ad displays mounted atop their cars. Lyft confirmed the deal but declined to share any details.

Why it matters: Ride-hailing companies are increasingly eyeing additional ways to generate revenue, and Lyft rival Uber has been quietly testing a partnership with New York-based Cargo that gives it a cut of the advertising revenue, as I previously reported.