Tesla subpoenaed over Elon Musk tweets…again

You’re here (TSLA) revealed in a quarterly regulatory filing on Monday that it had received a new subpoena from the SEC on June 13, related to “our governance processes regarding compliance with SEC regulations.” The settlement, which stripped Musk of his title as Tesla chairman while allowing him to remain CEO, came about due to Musk’s 2018 tweet that he had “secured funding” to take Tesla private.
The SEC claimed that despite talks with Saudi investors, Musk had not secured the necessary financing to take Tesla private. As part of that settlement, Musk accepted the charge and also agreed to submit any future tweets containing information that may be material to investors to other Tesla executives for approval.

Musk has been bitterly critical of the SEC since this settlement. At a TED talk earlier this year, Musk said he agreed to a settlement only because if he continued to fight the agency, Tesla’s banks would have cut off funding at a time when it needed it. of cash.

He then compared the experience to someone pointing a gun at their child’s head.

Musk’s attorneys have also filed complaints with the federal judge overseeing the settlement, complaining that the SEC is trying to “chill its exercise of First Amendment rights” because Musk is a “vocal critic of the government.”
In addition to its investigation into Musk’s role at Tesla, the SEC examines his tweets about his efforts to buy Twitter (TWTR). The agency sent a letter to Musk on June 2 with questions about his tweets related to the takeover effort, including those about the deal being suspended, according to a regulatory filing Thursday. The agency previously asked Musk in an April letter about his apparent delay in disclosing his significant Twitter stake.

Tesla previously disclosed a subpoena related to an SEC investigation into the settlement in November 2021. Tesla wrote in Monday’s filing that the company “regularly” cooperates with regulatory and government investigations, including subpoenas. . The SEC had no response to questions regarding its latest Tesla subpoena.

Also in Monday’s filing, Tesla provided more details about its cryptocurrency holdings. The company said its remaining bitcoin and other cryptocurrency assets had a book value of $218 million as of June 30, up from $1.26 billion at the end of last year. Last week, in its earnings report, Tesla revealed that it had sold 75% of its bitcoin stake during the second quarter.

Bitcoin lost almost half of its value in the first half of this year. Tesla said it took on $170 million for the loss in value of its crypto investments, while recording a $64 million gain on holdings it sold for more than their original purchase price .

During the call with investors last week, Musk said the bitcoin selloff was driven by the need to maintain the company’s cash reserves due to costs associated with shutting down its Shanghai factory during the pandemic. most of the quarter by the Covid shutdowns. He also noted the costs associated with starting new factories in Texas and Germany that he previously described as “gigantic money furnaces” due to supply chain issues that kept their initial production “puny”.

Musk said the company has not lost faith in bitcoin and noted that it did not sell holdings in another digital currency, dogecoin, during the quarter.

The company will need additional cash in the future. The filing also revealed plans to spend between $6 billion and $8 billion in capital expenditures, such as equipment, construction and other major items this year as well as the next two years. That’s an increase of $1 billion from the range he previously said he expected to spend each year in those years.

– Clare Duffy of CNN Business contributed to this report.

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