Prominent Tesla critic, PlainSite, suspended on Twitter under Elon Musk’s leadership

Elon Musk, the CEO of Tesla, engaged in a conversation with CNBC on May 16, 2023.

Image Credit: David A. Grogan | CNBC

Twitter took action and suspended the accounts of PlainSite and its founder Aaron Greenspan, who is known for being a prominent critic of both Tesla and Elon Musk. This occurred on Tuesday afternoon.

PlainSite is an online database that provides free access to state and federal court filings, as well as other public records. Additionally, the website offers analytics features for paying subscribers, aiding lawyers and pro-se litigants in gaining insights about attorneys, judges, government offices, and the law.

Greenspan has meticulously monitored litigation involving various companies primarily in the U.S., including Tesla, Twitter (which Musk acquired and made private last year), as well as competitors GM, Meta, and many others. Greenspan and Musk have also been involved in legal battles over the years.

At the time of suspension, PlainSite’s Twitter account had over 24,000 followers. Greenspan’s personal account had approximately 2,500 followers.

The suspension contrasts with public statements from Twitter’s executive chairman and CTO Elon Musk, as well as newly appointed CEO Linda Yaccarino. Yaccarino previously served as the global advertising chief at NBCUniversal, which is the parent company of CNBC.

In April 2022, when Musk expressed his interest in acquiring Twitter, he tweeted, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”

More recently, Yaccarino emphasized in a company-wide memo that an “unfiltered exchange of information and open dialogue about the things that matter most to us” is essential for a healthy society. She further stated, “You should have the freedom to speak your mind. We all should.”

Greenspan confirmed on Thursday that he has yet to receive an explanation from Twitter regarding the suspension of his accounts. He has requested the reinstatement of both accounts.

During the interview, Greenspan provided insights into why he initiated PlainSite as a “legal transparency initiative” and how he acquired the reputation of being a nemesis to Elon Musk.

“I co-founded PlainSite in 2011 with two friends because we were all curious as to why Occupy Wall Street didn’t have the impact we anticipated,” he recounted. “No financial executives faced legal consequences for the 2008 financial crisis, even though it was evident that there had been fraudulent activities. We believed that part of the reason for the lack of accountability was the public’s limited understanding of the law and the loopholes that allowed banks and executives to evade punishment.”

Over the years, Greenspan has disclosed his short positions in some of the companies he has studied and written about on PlainSite. Although he is no longer short on Tesla, he has held such positions in the past.

The Reason PlainSite Focused on Tesla

In 2018, PlainSite began conducting in-depth research on Tesla following the U.S. Securities and Exchange Commission’s (SEC) charges against Musk and the company for civil securities fraud.

The charges were filed after Musk tweeted that he was considering taking Tesla private at $420 per share and had secured funding to do so. This tweet caused trading to halt for the day and resulted in weeks of volatility in Tesla’s stock price.

Musk and Tesla settled the charges with the regulators, without admitting guilt or claiming innocence.

Greenspan stated, “I had no particular interest in Tesla until the SEC took action against the company and Musk in that year. This made me question whether the company was overvalued, considering its regulatory troubles at the time.”

A community on Twitter, comprised of short sellers and other subject matter experts interested in Tesla’s activities, became frequent users and subscribers of PlainSite.

PlainSite’s searchable court filings and public records often revealed details about Tesla’s challenges and strategies. Media outlets such as CNBC, Reuters, The New York Times, The Washington Post, Los Angeles Times, and others have extensively cited PlainSite records obtained through Freedom of Information Act requests.

Since 2018, Greenspan has made court filings and other public records available on PlainSite, which have revealed:

  • Twitter is facing over 25 lawsuits related to nonpayment to vendors since Elon Musk assumed control in October 2022.
  • Despite Musk repeatedly assuring shareholders that Tesla was on the verge of deploying a “level 4-5” self-driving robotaxi, the company’s Autopilot engineers officially categorized its most advanced driver assistance systems as “level 2” in government communications with the California DMV. A level 2 system is not fully autonomous and requires drivers to keep their hands on the wheel.
  • Complaints filed with Texas Attorney General, Nevada and Ohio Attorney Generals revealed that Tesla customers in these states encountered difficulties in obtaining necessary documentation from the electric vehicle manufacturer for vehicle registration at local DMVs.
  • Musk once attempted to refer a former process technician at Tesla’s Gigafactory, whistleblower Martin Tripp, to the U.S. Attorney’s office for the District of Nevada for potential criminal prosecution (p. 192) (source).
  • Musk was aware of SolarCity’s liquidity crisis when the Tesla board was pushing for the acquisition of the solar installer, which was founded by Musk’s first cousins and where Musk served as a major investor and board member.

In May 2020, Greenspan filed a lawsuit against a Tesla promoter, alleging harassment. Musk was named as a party contributing to the harassment in the lawsuit.

In February 2023, Musk filed a lawsuit against Greenspan for publishing their correspondence on Twitter and PlainSite. These emails are still accessible on PlainSite.

Twitter did not respond immediately to requests for comment.

Reference

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