You're here (TSLA) Chief Executive Officer Elon Musk is again boiling with the Securities and Exchange Commission after a tweet that he sent regarding the company's auto production. Tesla's action has fluctuated on Tuesday news.
The SEC filed a 17-page petition on Monday asking a federal judge to sentence Musk to civil contempt for a tweet that he sent last Tuesday. According to the tweet, Tesla will manufacture about 500,000 electric vehicles this year. The SEC says it violates the terms of an October 2018 court order forcing Musk to consult with Tesla's lawyers before sending any comments likely to influence the company's actions.
"He has again released inaccurate and material information about Tesla to his more than 24 million followers on Twitter, including to members of the press, and has made this inaccurate information available to anyone with any kind of information. Internet access, "the SEC said in court documents. The motion was first reported by Bloomberg late Monday.
Tesla shares initially fell more than 4% after trading hours on Monday. On Tuesday, the Tesla stock was up 0.8%, nearly 301.30.
A few hours after Musk published the tweet last Tuesday, he released another aimed at clarifying what he said.
"That meant an annualized production rate at the end of 2019, probably around 500,000, or 10,000 cars a week," he said. "Shipments for the year are still estimated at about $ 400,000."
The Musc fight with the SEC
But this tweet has not changed the SEC's opinion.
"Musk violated the Court's final judgment by engaging in the conduct that the prior approval provision of the final judgment was intended to prevent," the court told the SEC.
Musk has fought with the SEC many times. The two parties settled a dispute in October over the tweets that Musk had made in August 2018. Musk had then said that he was considering privatizing Tesla and that funding was being obtained.
As part of this settlement, Musk has agreed to appoint a new president and two independent members of the board of directors. He also paid a $ 20 million fine, while Tesla had to pay another $ 20 million.
While the tweet (Monday) was likely to highlight Tesla's achievements in a short time, it also opens the door to a potential legal risk for Musk and creates an excesses for Tesla's actions, after apparently resolving these problems. 39, last fall., "Jed Dorsheimer, an analyst at Canaccord Genuity, said Tuesday in a note to customers.
Uncertainty weighing on stocks?
Dorsheimer maintained a purchase price on the Tesla stock and a target price of 450.
According to Wedbush analyst Daniel Ives, uncertainty will weigh on Tesla's stock.
"Another boxing match with the SEC is the last thing investors want to see," Ives wrote in his report to customers.
He added that Tesla was already in a pivotal period, trying to revive the production of Model 3 and ship its electric vehicles to China and Europe.
"Although the jury does not know what direction this lawsuit in the SEC could give to Musk 's business, it will be a short – term surplus on the stock until investors can better evaluate it." impact, "wrote Ives.
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