Elon Musk, chief executive of Tesla, and the electric vehicle company’s board have been sued by a shareholder who accused Musk of violating his 2018 agreement with the Securities and Exchange Commission for use on Twitter.
According to an unsealed complaint Thursday in Delaware Chancery Court, Musk’s “erratic” tweets, including a May 1 post, said Tesla’s share price was “too high” and the board’s failure to Tesla to monitor its compliance with the SEC shareholders’ agreement to billions of dollars in losses.
Tesla did not immediately respond to a request for comment.
The SEC’s agreement stemmed from Musk’s August 2018 tweet, which he considered to consider Tesla private and had “secured funding” for a possible $ 72 billion transaction.
He and Tesla agreed next month to pay $ 20 million in civil fines to settle with the regulator, and Musk agreed that Tesla’s lawyers would examine some of his tweets in advance.
The shareholder lawsuit said Musk has continued to tweet without the necessary prior approval. He is trying to get Musk and other Tesla directors to pay damages to the company for breaching its fiduciary duties.