Elon Musk has had prior encounters with the SEC, often landing on the wrong side of regulatory scrutiny, despite his occasional mockery of the agency. Most notably, in 2018, he faced charges of securities fraud over a tweet in which he claimed to have “funding secured” to take Tesla private. This infamous tweet led to a settlement with the SEC, wherein Musk agreed to pay a $20 million fine and relinquish his position as chairman of Tesla’s board.
However, an aspect of that settlement continues to be a point of contention. It involves a provision requiring a so-called “Twitter-sitter” to pre-approve certain Tesla-related tweets made by Musk, a requirement he is currently disputing.
