According to the SEC, Elon Musk's tweet about the production of Tesla vehicles constituted a "blatant violation" of a court order to have his tweets checked before publishing them.



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  • The Securities and Exchange Commission rebutted Elon Musk's response to the court's contempt complaint against the Tesla CEO.
  • According to Monday's filing, a Musk tweet sent in February claiming that Tesla would produce 500,000 vehicles in 2019 was a "blatant violation" of a court decision to name a "Twitter tsar" that would check his tweets before to publish them.
  • The SEC, citing Musk's own words, accuses him of not doing so and changing his explanations as to why.

The Securities and Exchange Commission, in a document filed Monday by the court, said that a tweet published by Elon Musk in February was a "blatant violation" of a $ 40 million settlement forcing Tesla to appoint a "Twitter czar" who would check his tweets for material information to the company before publication.

The SEC filed a contempt complaint against Musk over a Feb. 19 tweet in which Musk said Tesla would produce 500,000 vehicles in 2019. Musk corrected the tweet about Tesla's production hours of vehicles after sending it.

The tsar of Twitter was supposed to prevent the CEO of Tesla from tweeting information about the electric car manufacturer that could unduly disrupt the market. This order stems from an agreement between the SEC and Tesla in September over Musk's now-infamous "guaranteed financing" tweet, in which he said he was ready to privatize the company. Tesla and Musk were both sentenced to pay $ 20 million each in restitution.

Tesla has implemented a new policy governing communications between senior management in the settlement.

Read more: MUSK DEPOSITS DEFENSE: SEC says it wants to violate First Amendment rights and "retaliatory and censorship"

The SEC accuses Musk of failing to have his tweets checked and to decide "unilaterally" what constitutes material information.

"The prior approval requirement was designed to protect against any thoughtless conduct of Musk," the SEC said when it was filed Monday. "So it is amazing to learn that at the time of the filing of the pending motion, Musk had not requested the prior approval of only one of the many tweets on Tesla that had been filed. it had been published in the months that followed the policy of prior authorization given by the Court.

"The changing justifications of Musk suggest that there has never been a bona fide effort to comply with the court's order and Tesla's policy. Musk simply chose to ignore them. "

This is the latest development of an ongoing dispute between Musk and the SEC. The CEO of Tesla did not hesitate to disdain his disdain for the regulator he had previously called the "Enrichment Shortseller Commission".

Legal experts quoted by Reuters say the SEC has a number of remedies if it is possible to continue if the Musk settlement goes south. These could include higher fines against Musk and more severe restrictions on his activities.

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