SEC Wants Contempt Charge Against Musk Over Tweet

The Securities and Exchange Commission isn’t through with Elon Musk.

Reuters reported that the government agency is seeking a contempt order against the Tesla founder and ex-CEO over a tweet he posted on Feb 19 that the SEC claims violated a settlement that mandated that statements made by Musk had to be vetted by the company.


The offending tweet, shown above, was referred to in a court filing on Monday. The agency stated that Musk did not seek or receive preapproval for the tweet, which they claim was false and seen by more than 24 million people.

“Musk has thus violated the court’s final judgement by engaging in the very conduct that the preapproval provision of the final judgement was designed to prevent,” wrote the SEC in the motion filed in a Manhattan federal court.

Musk posted this tweet in response:

Musk later tweeted Monday night in a now deleted tweet: “SEC forgot to read Tesla earnings transcript, which clearly states 350k to 500k. How embarrassing…”.

The same judge that signed off on the settlement last October must now decide if Musk violated the terms of the settlement due to the tweet.

Musk and the SEC have had a combative recent past. Last year, the agency accused Musk of fraud for making false statements about taking Tesla private, leading to the agency demanding Musk lose his CEO title. In October 2018, he called the agency Shortseller Enrichment Commission, then two months latter, in an interview with 60 Minutes, stated that although he respected the US justice system, “I do not have respect for the SEC.”

 

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