Judge orders Elon Musk and the SEC to settle the dispute over Tesla's tweet



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The SEC took him to court for the second time after tweeting a photo of the Tesla factory and added that the automaker was going to manufacture 500,000 cars in 2019. He corrected himself in another follow-up and specified that 500,000 was just what we expected. production rate. Tesla still plans to deliver 400,000 vehicles for the year, which is in line with previous forecasts. Clearly, his clarification was not enough for the SEC.

Musk had to resign as president of Tesla and pay a $ 20 million fine the first time the Securities and Exchange Commission filed a lawsuit against him for tweeting about the privatization of Tesla. The agency said its proclamation that the company already has the funds to entrust the builder to a private builder is a fraud for being "false and misleading".

Although this lawsuit was also intended to prohibit the executive from serving as a leader of an open society, the agreement between Musk and the SEC allowed him to retain his position as chief executive officer. from Tesla. Also part of this case? Have tweets containing important information about the production of Tesla vehicles, previously approved by one of the company's lawyers.

The commission said that by tweeting the 500,000 production prospects for the year, Musk shared "inaccurate and material" data, which was not reviewed by Tesla's lawyers. Musk argued, however, that it had the right to decide whether a position should be approved beforehand and that the tweet in question mattered little to the shareholders. He said in a statement provided to Reuters:

"I have a lot of respect for Judge Nathan and I am delighted with his decision today." The tweet in question was true, not important to shareholders and did not in any way constitute a violation. of my contract. "

Judge Nathan gave both parties two weeks to reach an agreement. If they still fail to reach one at that time, it is then that she will make her decision. In the event that Musk is found guilty of contempt, he may be forced to start submitting regular reports on how Tesla's lawyers oversee his tweets. SEC Lawyer, Cheryl Crumpton, is also considering the possibility of imposing heavier fines, knowing that Musk said the $ 20 million fine that he had had to pay the first time was worth it.

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