Tesla Reveals It Received a Subpoena After Elon Musk Tweet The subpoena requested information on Tesla's compliance with an earlier settlement reached between Musk and the SEC.

By Chloe Arrojado

entrepreneur daily

Maja Hitij | Getty Images

A financial filing on Monday revealed that Tesla received a subpoena from the SEC last November. The SEC subpoena is related to a 2018 settlement that required CEO Elon Musk's tweets about the electric vehicle company to be vetted.

"The SEC had issued subpoenas to Tesla in connection with Musk's prior statement that he was considering taking Tesla private," the Tesla filing noted. "More recently, on November 16, 2021, the SEC issued a subpoena to us seeking information on our governance processes around compliance with the SEC settlement, as amended."

The Tesla subpoena was issued 10 days after Musk launched a Twitter poll asking his Twitter followers if he should sell 10% of his stake in the company.

The subpoena requested information on Tesla's compliance with a 2018 settlement between Musk and the SEC. The settlement occurred after Musk posted a tweet in August 2018 that he had the "funding secured" to take the company private. The investigation was resolved in September 2018, with Musk agreeing to have Tesla's lawyers pre-approve tweets with material information about the company. They further clarified the terms in an April 2019 amendment.

Related: Ex-Tesla Employees Reveal the Worst Parts About Working for the Company

Musk has been public with his disdain for the SEC over the years. In a 60 Minutes interview in 2018, Musk said, "I want to be clear. I do not respect the SEC. I do not respect them." More recently, he posted a tweet about his discontent with the government agency.

Tesla stock is down 0.061% over a 24-hour period as of Tuesday morning.

Related: Tesla is Raising $2 Billion in Funding Two Days After Elon Musk Said It Didn't Need To

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Growing a Business

5 AI Hacks You Need to Know About in 2024

Despite its vast potential, the key to leveraging AI effectively lies in balancing automation with human oversight to avoid pitfalls and ensure that creativity and decision-making remain human-driven.

Business News

Former Pediatrics Professor Donates $1 Billion, Makes Albert Einstein College of Medicine Tuition-Free

Dr. Ruth Gottesman's husband left her $1 billion in Berkshire Hathaway stock with the following instructions: "Do whatever you think is right with it."

Starting a Business

Long-Lost Sisters Who Built the Largest Black-Owned Wine Company in the U.S. Reveal How to Break Into a Notoriously Tough Industry

Andréa and Robin McBride followed their shared love of wine into business — but it hasn't always been easy.


Get a 15-inch MacBook Pro for Less Than $375

Save on this refurbished MacBook Pro for a limited time.