Tweets settlement by Elon Musk violated by Tesla, says SEC: NPR

The Securities and Exchange Commission has asked a federal judge to sentence Elon Musk, president of Tesla Inc., to contempt for violating a court ruling limiting what he could report on his company's performance.

In a case filed Monday in court, the SEC argued that Musk had violated a settlement reached last year, requiring it to obtain approval from company officials before making any public statements that could affect the price. Tesla shares.

February 19, musk tweeted that "Tesla manufactured 0 cars in 2011, but will manufacture about 500,000 in 2019."

But this statement was contrary to Tesla's earlier guidance on advanced automaker productivity forecasts.

In another tweet About four hours later, Musk said, "That meant annualized production rate at the end of 2019, probably around 500,000, or 10,000 cars a week, with shipments for the year still estimated at about $ 400,000." .

In its record, the SEC argued that Musk had not checked and approved the first tweet before sending it.

"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, "said the SEC.

Musk's legal problems date back to August 2018, when he publicly suggested taking Tesla in camera, suggesting a course of action and claiming that funding for the plan was "secure." But later, he retracted.

The SEC brought an action alleging that Musk misled investors. In the colony, Musk kept control of Tesla, but he was stripped of his title as chairman of the board and fined $ 20 million.

He also agreed to get approval before tweeting messages about the company. In its filing, the SEC stated that the requirement "is clear and unambiguous".

A spokesman for the company did not immediately respond to requests for comment.