on the crypto
Elon Musk doesn't want to give in to the SEC.
What happened
Tesla's shares (Tesla shares - ticker TSLA) bounced 3% this morning after Reuters reported that CEO Elon Musk filed an appeal to end his 2018 deal with the Securities and Exchange Commission (SEC) for his posts on Twitter.
Meanwhile, an analyst just predicted stronger days for the electric vehicle (EV) maker.
And so?
After the SEC filed a lawsuit in 2018, arguing that Musk defrauded investors with "false and misleading claims" on Twitter about securing enough funding to make Tesla private, Musk and Tesla entered into a deal with the regulatory authority. As part of the deal, Musk stepped down as president of Tesla and Tesla and Musk agreed to pay $ 20 million each in penalties, while also agreeing to have the CEO's tweets sifted on any information by a lawyer. relevant commercial before posting them on the social media platform.
However, the SEC later requested an investigation and sued the documents, resulting in Musk's allegation of harassment and undermining his constitutional right to free speech. Earlier this year, Musk tried to end the decree to have his tweets checked, but a U.S. district judge overturned his efforts in April.
Musk, however, has not given up yet. This morning he filed an appeal against the judge's refusal and will ask the US 2nd Circuit Court of Appeals in Manhattan to overturn the judge's decision, Reuters reported.
Here's what could happen now
As long as the decree remains in effect, Musk and Tesla will continue to face non-compliance and other legal risks. Musk's latest appeal demonstrates his firm intention to end the decree and legal burden on Tesla.
Meanwhile, Mizuho analyst Vijay Rakesh reiterated his buy rating on Tesla this morning, saying he believes the company should benefit from China's easing of COVID-19 lockdowns and resumed sales of Tesla. electric vehicles globally. Retail sales of new energy vehicles in China increased nearly 91 percent from the previous year in May, according to data from the China Passenger Car Association.
Tesla has other challenges to address right now, but with analysts forecasting a strong recovery in the global electric vehicle market in the second half of 2022, investors have found a good reason to raise their heads on the stock today. Are you a Tesla investor? Or haven't you got your hands on Musk's title yet? Let us know in the comments section below.
