Tesla’s (TSLA) feud with the Securities and Exchange Commission over CEO Elon Musk’s tweets appears to have ended in a stalemate, according to a Wall Street Journal report. Tesla stock fell.
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Records show the SEC told Tesla last year that Musk twice violated a court-ordered policy requiring his tweets to be vetted by company lawyers, the Journal reported after obtaining correspondences from a Freedom of Information Act request.
In 2018, the SEC said Musk committed fraud when he tweeted about a potential buyout of Tesla. Musk and Tesla each paid $20 million to settle the case and agreed to have his social media posts monitored by Tesla lawyers.
But the SEC said Musk tweets in 2019 and 2020 about Tesla’s solar roof production volumes and its stock price had not gone through the preapproval protocol.
Tesla disputed the SEC’s claims about the tweets. And the SEC never went back to court to ask a judge to intervene.
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Tesla Stock
Shares fell 3% to 605.50 on the stock market today. Tesla stock reclaimed its 200-day moving average last week and remains just above the benchmark, according to MarketSmith chart analysis. But shares are still below their 50-day line.
Tesla stock is down almost 33% from an all-time high of 900.40 it hit intraday on Jan. 25. Its relative strength line is trending lower.
Among U.S.-based automakers with growing EV offerings, General Motors (GM) inched up 0.3%, Ford (F) was flat, and Volkswagen (VWAGY) rose 3%.
Tesla reportedly recently took the unusual step to pay in advance to secure chips for its vehicles as competition for supply intensifies.
In a tweet on June 2, Musk confirmed the chip shortage continues to be “our biggest challenge.”
He added: “Fear of running out is causing every company to over order — like the toilet paper shortage, but at epic scale. That said, it’s (obviously) not a long-term issue.”
Meanwhile, Electrek reported that Tesla is recalling nearly 6,000 U.S. Model 3 and Model Y cars because brake caliper bolts could be loose and potentially reduce tire pressure. Tesla said the National Highway Safety Transportation Administration had no reports of crashes or injuries related to the issue.
The recall isn’t yet listed on NHTSA’s website, but Tesla reportedly already sent an email to some Tesla owners.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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