- The Securities and Exchange Commission on Monday accused Tesla CEO Elon Musk of violating his agreement stemming from last year’s attempt to take the company private.
- A judge on Tuesday said the billionaire had until March 11 to explain why he should not be found in contempt, according to Reuters.
- Musk mocked the agency once again on Twitter following the allegations, saying something was “broken” at the stock regulator.
On Monday, the Securities and Exchange Commission – the US’s top stock market regulator – accused Musk of violating his agreement with the agency stemming from his failed attempt to take the automaker private.
The SEC claims that $US20 million settlement was breached last week when Musk tweeted projected production numbers for Tesla that differed from the company’s regulatory disclosures. Musk clarified his tweet after a few hours.
— Adam Klasfeld (@KlasfeldReports) February 26, 2019
“Musk did not seek or receive pre-approval prior to publishing this tweet, which was inaccurate and disseminated to over 24 million people,” the SEC said in a filing with the US District Court for the Southern District of New York.
“Musk has thus violated the court’s final judgment by engaging in the very conduct that the pre-approval provision of the final judgment was designed to prevent.”
A Tesla representative on Monday declined to comment on the SEC filing.
Musk has shown little sign of backing down, echoing his past disputes with the federal regulator.
“SEC forgot to read Tesla earnings transcript, which clearly states 350k to 500k. How embarrassing …,” Musk tweeted Monday evening. He followed that Tuesday morning by saying “something is broken” at the SEC.
Read more about Tesla and Elon Musk:
- Elon Musk criticised federal regulators on Twitter and said the $US20 million fine he paid over his ‘funding secured’ tweet was ‘worth it’
- Tesla’s board is terrible at its job – it’s shown it has no interest in controlling Elon Musk or sticking up for investors
- Elon Musk can help pick his replacement as chairman of Tesla – despite complaints he already has too much sway over its board
- Tesla’s board is so bad at its job that it failed at the one thing it says is paramount: protecting CEO Elon Musk
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