lon Musk uses his Twitter account “wisely” and is being wrongly accused of being reckless by the SEC. That’s the opinion of Tesla’s new chairwoman Robyn Denholm.
“Twitter is part of everyday business for many executives today. From my perspective, he uses it wisely.”
Denholm made the statements March 27, shortly after giving a speech at the American Chamber of Commerce in Australia, Bloomberg reported.
Denholm was reacting to a contempt motion filed against Musk in February by the Securities and Exchange Commission. Last week, Musk fired back, saying “the SEC’s position is wrong at virtually every level.”
Tesla Chair: Musk’s Tweets Are Not a Problem
Robyn Denholm was a Tesla board member before becoming its chair in November 2018. She defended Musk’s Twitter habits, saying the SEC’s contention that they cause problems is overblown.
“I don’t think he poses any challenges. The company is running very well and the board itself is very engaged. We meet with him all the time.”
‘Wrong at Virtually Every Level’: Elon Musk Torches ‘Radical’ SEC for Twitter Gag Attempt https://t.co/qBTAvBkrgK
— CCN.com (@CCNMarkets) March 24, 2019
Robyn Denholm: Elon Musk Did Nothing Wrong
Elon Musk will face off against the SEC on April 4 in New York district court. A federal judge will hear arguments from both sides to determine if the billionaire should be held in contempt.
The SEC has accused Musk of violating a September 2018 consent order under which he agreed to get approval for any tweets he posts that could affect Tesla’s stock price.
Tesla chair Robyn Denholm says Musk did not violate the consent decree. Moreover, she says Tesla’s board of directors has been doing its part to ensure that Musk remains in compliance.
“We’ve done everything that we need to do under the settlement. But obviously, it’s going to the court and it will go from there.”
Elon Musk: SEC Is Overreaching
As CCN reported, Musk has repeatedly triggered the ire of the SEC and caused investor anxiety with his tweets.
In a fiery March 22 court filing, Musk accused the agency of overreaching and attempting to silence him on Twitter.
“The SEC’s reply makes clear that its effort to hold Musk in contempt relies on a radical reinterpretation of the Order that would impose sweeping restrictions to which Musk never consented.”
“The SEC’s position is wrong at virtually every level.”
— CCN.com (@CCNMarkets) February 26, 2019
Musk also pointed out that his use of Twitter is a crucial part of Tesla’s marketing and consumer-outreach efforts. He says the SEC’s “overbroad interpretation” restricts his free-speech rights.
“The SEC’s proffered interpretation of the Order would not only gag ‘false or misleading’ speech; it would gag any Tesla-related speech.”
“Musk’s ability to engage with customers about Tesla products is critical to Tesla’s success.”