The Securities and Exchange Commission (SEC) has responded to Tesla CEO Elon Musk’s assertions that the company has subjected him and his electric car company to “unending, unjustified probes,”.
As originally reported by the Wall Street Journal. The SEC, in a letter to Alison Nathan, refutes Musk’s claims that it is neglecting its commitment to distribute $40 million in outstanding funds to Tesla shareholders. This is what Musk and Tesla agreed to pay as part of a 2018 deal.
The Securities and Exchange Commission is still working on a plan to disperse $40 million to Tesla stockholders.
Within the letter, SEC reliable Steve Buchholz says, “Given the complexity of the distribution, it has required time to expand the plan of allocation.” “That procedure is nearing completion, and the Distributions team of workers anticipates posting the proposed plan of distribution for the Court’s approval by the end of March 2022, barring any unexpected circumstances.” The SEC also states that it has complied with a court order requiring it to keep track of studies pertaining to the distribution’s status.
Musk’s court battles have been included in a letter that his attorney, Alex Spiro, presented to the court on his behalf. It considers a 2018 settlement — again managed by Nathan — in which the SEC sued Musk with securities fraud after he tweeted that he had “investment secured” to turn Tesla into a personal corporation.
Musk and the SEC ultimately negotiated a compromise, with Musk and Tesla each paying $20 million in fines. It also demanded that Musk stand down as chairman of Tesla for three years and that the company monitor any statements Musk makes about the company on social media.
Musk was accused of “blatant violation” of the agreement by the SEC in 2019 when he tweeted that Tesla will build around 500,000 vehicles that year — a number far higher than what Tesla had first anticipated.
The SEC requested a federal court order holding Musk in contempt, which Musk contended was a “unconstitutional energy grab.” Nathan later issued an order for the two to work out their differences on their own.
Earlier this month, we learned that the SEC had subpoenaed Tesla in November in connection with Musk’s tweet. Musk accuses the SEC of wasting its time by subpoenaing Tesla. This is rather than releasing the $40 million to shareholders in his letter to the court.
The SEC retaliated by declaring that the subpoena is unrelated to the current action. And that if Tesla and Musk “have official complaints to the SEC’s proceedings,” they must raise them through the appropriate felony channels.