Breach of Trust

House Democrats Issue Consequences for Elon Musk's SEC Settlement

A group of House Democrats has sent a letter to the Securities and Exchange Commission (SEC), urging the agency to hold Tesla CEO Elon Musk accountable for his recent settlement regarding his tweets about the electric car manufacturer's stock price.

In August, Musk reached a settlement with the SEC, agreeing to step down as chairman of Tesla's board of directors for three years and pay a $20 million fine. However, a group of House Democrats, led by Representative Ted Deutch, are arguing that the settlement does not go far enough in holding Musk accountable for his actions.

In their letter, the Democrats claim that Musk's tweets about Tesla's stock price, which included a statement that he was considering taking the company private, caused significant market volatility and potentially damaged investors. They are urging the SEC to take further action against Musk, including imposing additional fines or penalties.

"We are concerned that the SEC's settlement with Mr. Musk does not adequately address the harm caused by his tweets," the letter reads. "We urge the SEC to take additional steps to ensure that Mr. Musk is held accountable for his actions and that the integrity of our capital markets is protected."

The letter also expresses concern that the settlement does not include any provisions to prevent Musk from tweeting about Tesla's stock price in the future. The Democrats are urging the SEC to take steps to prevent Musk from using social media to manipulate the market again.

The letter has been signed by 12 House Democrats, including Representatives Deutch, Adam Schiff, and Maxine Waters. The move is seen as a sign of growing concern among lawmakers about the impact of social media on financial markets and the need for greater regulation of the industry.