Musk's tweet violates legal pact, in hot soup with SEC

GettyImages-187005526

Elon Musk should be held in contempt of court, the US Securities and Exchange Commission has told a NY federal court after Tesla's mouthy CEO tweeted about the number of cars the company will roll out this year.

However, the SEC said his latest tweet breaches this agreement, claiming that Musk has "once again published inaccurate and material information about Tesla to his over 24 million Twitter followers". And the SEC argues the tweet ran afoul of an October settlement requiring Musk to seek pre-approval from Tesla lawyers before tweeting out potentially market-moving information.

In another tweet about four hours later, Musk said, "Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week".

The SEC cites the message tweeted by Musk on February 19 about Tesla's plans to manufacture 500,000 vehicles this year.

The SEC had sued Musk last September for using his Twitter account in August to announce he had secured financing for a potential buyout of Tesla - news that caused the company's stock to swing wildly.

The problem? He isn't supposed to tweet about things that could impact markets and his publicly traded company.

The latest news could re-open the long running debate. Tesla's stock rose by just $1.10, or less than 1 percent, the next day. In the settlement, Musk kept control of Tesla, but he was stripped of the title of board chairman and ordered to pay a $20 million fine.

Musk's first tweet on February 19 was not pre-approved, the SEC discovered and outlined in its filing with the court.

Snow, sleet threaten U.S. East Coast, hinder hundreds of flights
Total snow and sleet accumulation of 3 to 6 inches and ice accumulation of one to tow tenths of an inch are expected. Heavy snow was predicted for northern Arizona and significant rain for central Arizona deserts through Friday .

But the cult of personality has also had a downside for Tesla, with Musk sending the stock into a tailspin after antics such as smoking marijuana during a podcast interview or insulting analysts on a conference call.

Since agreeing to the settlement, Musk has repeatedly antagonized Wall Street's main regulator.

It also is not clear how Musk's public criticism of the SEC might weigh on his fate.

This included a clause that Musk had to seek Tesla's pre-approval of any written communications, including social media posts, that would be relevant to the company or its shareholders. And Musk's first tweet wasn't a verbatim restatement, the agency said.

The order by U.S. District Judge Alison Nathan in Manhattan came hours after the billionaire criticized SEC oversight as "broken", in the wake of the regulator's request on Monday night that he be held in contempt. "Who knows? ... Nobody's ideal".

Musk got even more pointed in December, when he told 60 Minutes "I do not respect the SEC".

Musk went on to say that "I do not respect the SEC ..."

Related News:

  • White House slams Michael Cohen as 'disgraced felon' and 'convicted liar'

    White House slams Michael Cohen as 'disgraced felon' and 'convicted liar'

    Cohen is testifying on Capitol Hill for three days this week, though Wednesday's hearing is the only one that it is public. The press secretary's comments came as Cohen privately testified in front of the Senate Intelligence Committee Tuesday.
    Khloe Kardashian Thanks Fans Amid Tristan Thompson and Jordyn Woods Scandal

    Khloe Kardashian Thanks Fans Amid Tristan Thompson and Jordyn Woods Scandal

    Her people are rallying around her right now letting the 34-year-old know it is ok to take all the time she needs. Khloe Kardashian shows appreciation for fans' ongoing support during a trying time.
    Soon, Google Assistant will offer suggestions as you text

    Soon, Google Assistant will offer suggestions as you text

    Two other smartphone brands, TCL and Vivo will also launch phones with the Google Assistant button later this year. Google has now added in more languages, namely Korean, Hindi, Swedish, Norwegian, Danish and Dutch, to this mix.
  • Newcastle fans delighted with Miguel Almiron's man of the march performance

    Newcastle fans delighted with Miguel Almiron's man of the march performance

    After two wins and a lengthy global break to start November, Newcastle United secured a win to close out the month vs. Almiron, understandably, got the headlines yesterday, but there were impressive performances all over the pitch.

    Kvitova to Face Bencic in Dubai Final

    Kvitova's serve improved in the second set, though, and the Czech player also broke Bencic three times to level the match. Speaking of her Swiss compatriot, Bencic said: "I'm trying to be as calm as him (Federer)".
    Jordyn Woods speaks after allegedly cheating with Tristan Thompson

    Jordyn Woods speaks after allegedly cheating with Tristan Thompson

    Khloe Kardashian 's ex-husband Lamar Odom "hates that she's been hurt again", after learning of the latest cheating scandal with her baby daddy Tristan Thompson .
  • Special tattoo for Meghan Markle

    Special tattoo for Meghan Markle

    Meghan let her designer dress shine and kept her accessories simple, wearing only earrings and carrying a matching clutch. Kate Middleton also sported a henna design similar to Markle's on a trip to England while carrying Prince Louis.
    Cargo plane crashes outside Houston leaving 'total devastation'

    Cargo plane crashes outside Houston leaving 'total devastation'

    Sean Archuleta had been getting a lift back to his home in the Houston area, his friend told the Houston Chronicle . Atlas Air Worldwide has been operating Boeing 767 freighters on behalf of Amazon following a 2016 deal.
    Australia Plays Down Reports of Chinese Coal Ban

    Australia Plays Down Reports of Chinese Coal Ban

    While imports of Indonesian and Russian coal would still be allowed, Australian coal was banned. Its ambassador to Canada this week warned that excluding the company will have repercussions.
  • Indian planes bomb Pakistan as Kashmir tensions escalate

    Indian planes bomb Pakistan as Kashmir tensions escalate

    He said the munitions caused no casualties or damage on the ground, publishing purported photos of craters left by the bombing. Firing across the Line of Control has killed and wounded dozens of soldiers and civilians on both sides in recent years.
    R Kelly sexual abuse claims: Singer enters NOT GUILTY plea

    R Kelly sexual abuse claims: Singer enters NOT GUILTY plea

    R.Kelly is presently being detained at a police facility in Chicago after failing to meet up with his $1m bail bond. The video tape allegedly shows Kelly having sex with a 14-year-old, which was denied by Kelly's attorney.
    R. Kelly Charged With 10 Counts of Aggravated Criminal Sexual Abuse

    R. Kelly Charged With 10 Counts of Aggravated Criminal Sexual Abuse

    He also maintains that the timeframe of the sexual assault depicted in the video falls within the IL statute of limitations. In 2017, DeRogatis wrote a story for BuzzFeed about the allegations Kelly was holding women against their will in Georgia.


Most liked

Mel B Criticizes Lady Gaga For Oscars Performance With Bradley Cooper
It has become tradition for every Best Original Song nominee to perform their hit at the annual Academy Awards ceremony. Before accepting the award at the Dolby Theatre, Gaga belted out the number with her co-star Bradley Cooper .

Black Panther Wins Three Oscars For Marvel Studios
That might not have been possible in the past, but Black Panther is showing that it's certainly possible today. Carter's incredible work on Black Panther finally brought the gold to the MCU.

Mahershala Ali wins supporting actor Oscar for 'Green Book'
The family of Don Shirley , who is played by Mahershala Ali in the film, has also said the portrayal is not accurate. John Lewis (D-Ga.) (shown above) introduce " Green Book " is creating nearly as much controversy as the film itself.

Iran ‘successfully fires’ missile from submarine in Gulf war games
The maneuvers came as United States aircraft carriers returned to the region after a long absence. Tehran says the program provides deterrent capabilities and is defensive.

Reds to face tough test against Manchester United
After such a messy first half, neither side were able to truly get into their stride in a disappointing game. Meanwhile, James Milner admits that they must ramp up their performances after their no-show against United.

Leicester sack manager Claude Puel after home loss to Crystal Palace
We were in trouble at the end. "The players need confidence, they have played well without fair reward in the last few games". Jamie Vardy punched a door in anger following Leicester's 4-1 defeat to Crystal Palace , Sportsmail understands.

Dustin Johnson claims five-shot win over Rory McIlroy at WGC-Mexico
Tiger Woods finished up the final round of the WGC-Mexico Championship with a 2-under 69 to finish tied for 10 at 8 under par. Woods missed the birdie putt but still carded a useful 66 to move into the top 10 alongside Tyrrell Hatton.

Lionel Messi scores 50th career hat-trick as Barcelona win at Sevilla
The snap shared by Busquets after Barcelona's 4-2 win over Sevilla shows the Uruguayan putting a bag of ice on the area. They host Barca in the Copa del Rey semi-final second leg on Wednesday, and again in La Liga on Saturday.

US Officials 'Optimistic' on Reaching Trade Deal with China
Without elaborating, Trump said the two sides already have an agreement on "currency and currency manipulation". Federal Reserve said Friday that net exports would detract from last year's economic expansion.

Cyclone to stay offshore, prompting risky surf conditions
Beachgoers in northern NSW have been warned of risky surf and wind conditions as a cyclone tracks off the Queensland coast. Beaches from Tweed Heads to Port Macquarie have been closed and are expected to remain closed until early next week.

Oil Hits Highest 2019 Level
Analysts say that the United States output will increase further and oil firms will raise exports to shift surplus stocks. Goldman Sachs said in a note it expects OPEC output to average 31.1 million bpd in 2019, down from 31.9 million bpd.

Pelicans to rest Anthony Davis vs. Lakers on Saturday
Regardless of how messy the situation gets from here, Davis will play for another team in 2019-20. During the All-Star break, the Pelicans fired GM Dell Demps and replaced him with Ferry.

Venezuela troops fire tear gas on demo at Colombia border
The aid now sits in a warehouse on the Colombian border after the government of Venezuela refused its entry into the country. Humanitarian aid is critical but "will not improve the political and economic conditions that are responsible", the U.S.

Nigeria's Delayed Election Begins with Gunfire and Explosions
He tells reporters that "I look forward to a successful transition" and says he is impressed with voter turnout. He previously pledged to accept the results of the election, provided they are credible.

SpaceX Just Launched Israel's Lunar Lander off to the Moon
The Israeli spacecraft Beresheet launched this evening on a trip to the moon, where it hopes to touch down in two months. Launching the refurbished booster for a third time could net SpaceX millions (if not tens of millions) of dollars.