Elon Musk of Tesla may be in defiance of Twitter



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Elon Musk

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Reuters

The US financial regulator has asked a New York judge to sentence Elon Musk, chief of Tesla, in contempt for violating an agreement on social media comments.

The decision of the Securities and Exchange Commission (SEC) comes after he tweeted about the production of the auto company.

Last year, Mr. Musk agreed that he would not make any statement about Tesla's financial performance without prior agreement with the company.

This regulation followed his tweets in August on taking Tesla privately.

Tesla and Mr. Musk did not immediately comment on the SEC's move.

Tesla's stock price fell 5% after hours trading on Wall Street.

Last week, Musk released an aerial photo of thousands of new Tesla vehicles and said he was expecting the company to build 500,000 cars by 2019.

In court filings in New York on Monday, the SEC said Musk had not obtained approval before publishing the tweet, which was inaccurate and contrary to Musk's agreement . The SEC noted that the tweet had been broadcast to more than 24 million people.

"Musk thus violated the Court's final judgment in adopting the conduct that the prior approval provision of the final judgment was intended to prevent," the SEC wrote in its petition filed Monday in federal court in Manhattan.

How did the controversy about the tweet begin?

Tesla went through a difficult period, following comments that Mr Musk made on social media in August, suggesting that he had "secured funds" for an agreement to make Tesla private.

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Legend

Elon Musk smoked a joint when a podcast host offered it last year in California – smoking marijuana is legal in the United States.

His shares skyrocketed in response to these comments, but weeks later, Mr. Musk abandoned the project after shareholder reactions.

US authorities have ordered Tesla and Musk to pay a $ 20 million fine. Musk was also forced to resign as president for three years.

But he remained provocative, while investors also called for increased scrutiny after his erratic behavior attracted attention.

In interviews with the media, he said that he often slept on a couch in Tesla's office. In an online video, he smoked marijuana briefly.

In an interview with the CBS news channel, Mr Musk said that he had "no respect" for the SEC, but that he had chosen to pay for it. fine settlement because he believed in the judicial system.

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