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In a report filed Monday, the SEC said it was "amazing" that the billionaire business leader continued to send tweets on Tesla without consulting other people in the company while 39 he had accepted a court ordered bylaw compelling him to do so.
The filing is the latest salvo in a long battle between the SEC and Musk, who has been outspoken in his criticism of the securities regulator.
The SEC quoted a tweet from Feb. 19 in which Musk said that Tesla would build 500,000 cars in 2019. He then tweeted a message stating that Tesla would build at the annual rate of 500,000 cars by the end of the year. Year, but would actually only 400,000 cars in 2019.
"Reckless driving"
The SEC disputed these points in its Monday filing.
"The pre-approval obligation has been designed to avoid any thoughtless conduct of Musk," said the agency. "So it is amazing to learn that at the time of filing the [contempt] motion, Musk did not seek prior approval of just one of the many Tesla tweets it had published in the months following the application of the pre-approval approval policy. "
Musk interprets the regulation "as not requiring prior approval unless Musk itself unilaterally decides that his planned tweets are important, "said the agency, adding that such an approach is" inconsistent with the clear terms "of the regulation and renders" non-significant "the pre-approval condition.
The SEC also stated that Musk had "made no diligent or good faith effort to comply with the prior court order approval provision".
And he rejected Tesla 's CEO' s argument that his rights to the First Amendment are being violated, because the fact of needing prior approval for his tweets does not mean "that 's". he is forbidden to speak. "
Tesla did not immediately respond to a request for comment.
The US District Court in southern New York, which approved the initial settlement in October, will decide whether Musk's tweet, dated Feb. 19, violated the deal.
Jethro Mullen contributed to this report.
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