SEC says Elon Musk violated settlement agreement

SEC says Elon Musk should be held in contempt for inaccurate tweet about Tesla

SEC says Elon Musk should be held in contempt for inaccurate tweet about Tesla

Following the SEC's filing, Tesla shares fell by as much as 5.4 per cent as of Monday in NY.

On the same day of the original tweet, a few hours later, Musk amended his comment, clarifying that he meant an "annualized production rate" based on 10,000 cars made per week.

Tesla did not immediately respond to a request for comment.

The watchdog first filed a complaint in August previous year after Musk told his then 22 million followers that he would be taking Tesla private at $420 per share, that funding had been secured and the only uncertainty was a shareholder vote.

The public soon discovered that Musk had not actually secured funding for such a transaction, and federal securities laws make it illegal for the CEO of a publicly-traded company to publish misleading market-moving information.

"The SEC claimed on Monday that a February 19 tweet by Musk violated the settlement when he wrote that 'Tesla made 0 cars in 2011, but will make around 500k in 2019". As a result, the SEC is calling on Musk to show cause why he should not be held in contempt of the court's judgment from last September. Musk's tweet occurred weeks after the January earnings release, so the SEC argues that pre-approval would have been needed even if Musk had simply repeated information taken verbatim from an earlier Tesla publication.

Strong winds remain with snow showers Monday
In the evening, sustained wind will slow to about 35 miles per hour with gusts up to 50 miles per hour , according to the service. Sustained winds will reach up to 35 miles per hour , with gusts between 50-60 miles per hour .

Musk, 47, doesn't take a salary from Tesla, and he's repeatedly gone to the market to buy the auto maker's stock in a show of confidence in the company, which has never turned an annual profit.

The SEC's website states that "a person who violates the court's order may be found in contempt and be subject to additional fines or imprisonment".

But those factors evidently didn't sway the SEC, which illustrated Musk's allegedly contemptuous behavior with some of the comments he made during a television interview with "60 Minutes" that aired December 9. He also inquired with at least one bank a year ago about a personal loan tied to his stake in rocket company SpaceX, a source said at the time.

Musk went on to say that "I do not respect the SEC ..." I do not respect the SEC. If the judge sides with the SEC, we can expect the agency to seek further penalties in the future.

Tesla's board has added new members as part of the settlement, moves that some outsiders hope will increase oversight of Musk.

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