SEC asks judge to hold Elon Musk in contempt

The Securities and Exchange Commission has requested a federal judge to hold Tesla CEO Elon Musk in contempt for violating a settlement deal reached final 12 months.Musk tweeted on February 19 that “Tesla made 0 cars in 2011, but will make around 500k in 2019.”

Hours later, Musk despatched a follow-up tweet indicating that the corporate will really ship simply 400,000 vehicles this 12 months. Although Musk corrected his mistake, regulators scolded Tesla’s billionaire CEO as a result of he “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers,” in accordance to courtroom papers filed Monday.

The SEC famous that he didn’t ask for or obtain firm approval earlier than publishing his tweet.

His October 2018 settlement with the SEC mandates that he obtain pre-approval of any social media posts with info that is “material” to shareholders.

Tesla agreed to set up a board committee to oversee these posts.In a courtroom submitting, Tesla conceded Musk didn’t obtain pre-approval for his posts, however the firm claimed that he did not want it.

Tesla stated the language he used was based mostly on info the corporate made public 20 days earlier throughout its January 30 earnings call with Wall Street analysts.

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