Regulators Want Tesla’s Elon Musk Held In Contempt For Violating Deal

CALIFORNIA – The Securities and Exchange Commission (SEC) asked a judge Monday to hold Tesla CEO Elon Musk in contempt for violating the terms of an agreement requiring the company to pre-approve his tweets.

The SEC claimed Musk violated the agreement when he tweeted Tesla would make around 500,000 cars in 2019. Musk tweeted again later that he “meant to say” weekly production would equal to half-a-million cars annually while total car deliveries would be roughly 400,000. The company told the agency that the first tweet had not been pre-approved.

Tesla’s attorney saw the tweet after it was published and asked Musk to correct the error, the SEC said. “As a result of his failure to comply with the [settlement, Musk] once again published inaccurate and material information about Tesla to his over 24 million Twitter followers,” the SEC said in a press statement.

Musk and Tesla agreed to resolve an SEC probe in October 2018 without admitting or denying wrongdoing. The plan called for their combined $40 million in penalties to be distributed to affected shareholders, the SEC has said.

Musk told his Twitter followers in August of that year that he secured “funding” to take the company private at $420 per share, far more than the company was worth at the time of the tweet. His tweet followed a report suggesting Saudi Arabia became a major Tesla shareholder earlier in 2018.



Big Tech is censoring our publication severely reducing our traffic and revenue. You can support our mission of truthful reporting by making a contribution. We refuse to let Silicon Valley crush us into becoming just another regurgitated, propaganda driven, echo-chamber of traditional news media and we need your support. You can also help by liking or sharing us on social media or by signing up for our featured story emails.
 

Tesla has not yet responded to The Daily Caller News Foundation’s request for comment.

Follow Chris White on Facebook and Twitter

Comment via Facebook

Website Services: Register a web address with us and receive everything you need to get online. Give your website the reliable, high-performance hosting it deserves. Create a unique and professional email address based on your domain.