No, The SEC Didn’t Sue Elon Musk Again
The news that the SEC had sued Elon Musk again was all over my Twitter feed earlier today. However, it turns out that “news” is just a rumor based on a Tesla investor suing Tesla.
The headline by Bloomberg, “Musk, Tesla Board Sued Over Tweeting In Violation Of SEC Deal (2),” was crafted in such a way that it would not only lead folks into believing the SEC was suing Elon Musk and Tesla’s board of directors, but that it would also affect the share price of Tesla’s stock (TSLA).
The lawsuit, which was filed under seal on March 8, 2021, claims that Elon Musk exposed Tesla to billions in potential liability and market losses by tweeting. The complaint, filed in Delaware, said: “Further unchecked tweeting by Musk” [could] “have severe ramifications on the company’s ability to secure financing.” It added that this “drives out the very voices in the company meant to stand up to him and protect” [Tesla’s investors].
Elon Musk and Tesla’s board being sued for tweeting in violation of their deal with the SEC.
— Alexis Christoforous (@AlexisTVNews) March 12, 2021
Teslarati noted that the person suing Tesla is an investor named Chase Gharrity. This isn’t the first time Gharrity has sued over Elon’s tweets. He also sued back in 2019. In that lawsuit, Gharrity claimed that Tesla has “repeatedly and systematically” permitted CEO Elon Musk “to publicly disseminate false and misleading information about Tesla with devastating consequences to the company and to Tesla’s shareholders.” Apparently, Gharrity isn’t a fan of Elon Musk’s tweets.
Where The Rumor Of The SEC Suing Tesla Again Originated.
@CNBC How can you report that $TSLA and @elonmusk are getting sued by the SEC when you don’t even any of the facts? Your misinformation and lies will get people hurt. Get the full story before you spout your nonsense.
— Olivia (@tradingchik) March 12, 2021
CNBC reported that Elon Musk and the Tesla board were being sued for “Tweeting in violation of the SEC deal that Mr. Musk and the Tesla board had made with the SEC. Presumably, the suit would be from the SEC but we’re waiting for confirmation on this,” the anchor said.
Was this CNBC anchor paid off by TSLAQ to misreport the story?
Or is he just a complete fucking moron?
You decide. pic.twitter.com/TMSso5HpY1
— Whole Mars Catalog (@WholeMarsBlog) March 12, 2021
Although the reporter said “presumably,” this is just another part of the puzzle that seems to be yet another coordinated attack on Tesla and Elon Musk. Twitter user Klolik791 on Twitter noted that combined with the hoax of faking Elon’s death, this lawsuit seems to be a continued and coordinated attack against Tesla — or $TSLA, more specifically.
Sadly, we’ve seen this a million times before, and since Tesla has been the most shorted stock ever, it’s not surprising how low some will go to cash in — attempts to destroy the reputation of an American company that is one of the most vocal on sustainability isn’t a coincidence.
— wabbit79 ⚡🏳️🌈 (@klolik791) March 12, 2021