The statement continues. “Tesla and the board of directors are fully confident in Elon, his integrity, and his leadership of the company.”
The Wall Street Journal reported information from anonymous sources, saying that Musk nearly settled with the SEC, but backed out the last minute, deciding to fight the battle in court.
Legal Perspective
Peter Henning is a law professor at Wayne State University. He’s also a former lawyer for the SEC. He says that it’s an interesting case because it’s the first fraud case involving use of social media by the CEO of a public company. The problem is that neither Tesla nor Musk made full disclosure of their plans. Henning notes, “You can’t make full disclosure in 280 characters.” That’s limit of a single tweet.
