Two months after the SEC asked a federal judge to hold Tesla CEO Elon Musk in contempt for breaking terms of a settlement agreement with a tweet, the two have reportedly reached an agreement. Under the terms of the agreement, which still needs to be approved by a judge, Musk agreed not to tweet or otherwise disseminate information about Tesla’s finances, production numbers or certain other information without a lawyer’s approval. CNBC reports: The late Friday agreement […] lays out exactly what kind of information requires formal legal review before being shared. This oversight process is now required for the company’s blog, statements made on investor calls, as well as social media posts for material information. [CNBC has the laundry list of items laid out in the filing included in their report.] This superseding agreement settles a dispute between the SEC and Musk about whether the Tesla chief violated the terms of their original deal in which he had agreed to clear his tweets containing material information about the company before posting. The SEC had asserted that Musk never sought clearance for any tweet. The SEC first charged Musk last year, alleging he made fraudulent statements on Twitter. On Aug. 7, Musk tweeted that he had “funding secured” to take Tesla private at $420 per share. In the first deal, Musk had also agreed to pay a civil penalty of $20 million and forfeit his role as chairman of the board for at least three years. The company also paid a $20 million fine. “Some feared the SEC situation was not going to be resolved favorably so this resolution is a sigh of relief for the bulls. Tesla has enough bad news on its plate so this removes one headache for the Street with the focus now core demand and profitability,” said Dan Ives, managing director for equity research at Wedbush Securities.
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