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Federal judge orders Elon Musk to prove he shouldn't be held in contempt
Source: Washington Post
Federal judge orders Elon Musk to prove he shouldn’t be held in contempt
The SEC has accused the billionaire of not living up to terms of settlement reached last year
By Renae Merle February 26 at 12:52 PM
A federal judge on Tuesday ordered Tesla CEO Elon Musk to explain by March 11 why he should not be held in contempt for violating the terms of a recent settlement agreement.
The SEC accused Musk of breaking a deal to seek preapproval of any potentially market-moving tweets about the car company when he tweeted on Feb. 19 that Tesla would make about 500,000 cars this year. Four hours later, Musk tweeted that he “meant to say” the company’s weekly production rate would equal up to about 500,000 on an annual basis but that the total car deliveries this year would be closer to about 400,000.
The first tweet had not been preapproved as required, the SEC said in a motion filed in New York’s U.S. Southern District Court. Instead, Tesla’s attorneys saw the tweet after it was published and then reached out to Musk to draft a corrective second tweet.
In a letter to the SEC included in the motion, Tesla said that Musk’s initial tweet about production levels was in line with what the company had told investors during a January 2019 call and was “intended to recapitulate” that information. “SEC forgot to read Tesla earnings transcript ... How embarrassing,” Musk said in a tweet late Monday.
-snip-
The SEC has accused the billionaire of not living up to terms of settlement reached last year
By Renae Merle February 26 at 12:52 PM
A federal judge on Tuesday ordered Tesla CEO Elon Musk to explain by March 11 why he should not be held in contempt for violating the terms of a recent settlement agreement.
The SEC accused Musk of breaking a deal to seek preapproval of any potentially market-moving tweets about the car company when he tweeted on Feb. 19 that Tesla would make about 500,000 cars this year. Four hours later, Musk tweeted that he “meant to say” the company’s weekly production rate would equal up to about 500,000 on an annual basis but that the total car deliveries this year would be closer to about 400,000.
The first tweet had not been preapproved as required, the SEC said in a motion filed in New York’s U.S. Southern District Court. Instead, Tesla’s attorneys saw the tweet after it was published and then reached out to Musk to draft a corrective second tweet.
In a letter to the SEC included in the motion, Tesla said that Musk’s initial tweet about production levels was in line with what the company had told investors during a January 2019 call and was “intended to recapitulate” that information. “SEC forgot to read Tesla earnings transcript ... How embarrassing,” Musk said in a tweet late Monday.
-snip-
Read more: https://www.washingtonpost.com/business/2019/02/26/elon-musk-fires-back-sec-says-something-is-broken-agency/
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