US Securities and Exchange Commission vs. Elon Musk

Analysis Group affiliate Christopher Noe provided an expert report in a contempt motion brought against Tesla cofounder and CEO Elon Musk by the US Securities and Exchange Commission (SEC). The SEC had alleged that an after-market tweet made by Mr. Musk about future automobile production rates violated a court order intended to prevent potential manipulation of Tesla’s shareholders’ expectations and trading behaviors through false or misleading public statements.

With research assistance from an Analysis Group team led by Principal Eric Korman and Vice President Luxi Wang, Professor Noe evaluated whether the at-issue tweet contained material information for Tesla’s shareholders. Professor Noe reviewed stock price and trading volume data, news articles, and analyst reports, ultimately concluding that Mr. Musk’s tweet did not result in a meaningful price reaction or increase in share trading volume, and did not inspire equity analysts to comment.