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SEC Asks Judge to Hold Elon Musk in Contempt of Court

Video Credit: Newsy Studio - Duration: 01:16s - Published < > Embed
SEC Asks Judge to Hold Elon Musk in Contempt of CourtThe SEC claims Tesla's CEO violated a settlement agreement.

SEC Asks Judge to Hold Elon Musk in Contempt of Court

The Securities and Exchange Commission wants Tesla CEO Elon Musk held in contempt of court over a recent tweet.

In a complaint to a federal judge,  the SEC claimed  Musk violated his settlement agreement by publishing "inaccurate and material information about Tesla to his over 24 million Twitter followers." Musk  tweet ed  last week that Tesla "will make around 500k [cars] in 2019." He later  corrected himself , saying that with a production rate of 10,000 cars a week, the company will have an annualized production rate of around 500,000 cars at the end of 2019.   The SEC says Musk violated his settlement agreement because he did not get company approval for the tweet.

Last year, Musk settled with the SEC after the commission charged him with misleading investors when he  tweeted  he may take Tesla private.

Musk was  forced to step down  as chairman of Tesla, pay a $20 million fine and get approval from an internal committee for all of his communications to investors — including tweets.    Musk responded to the SEC's complaint Monday  in another tweet .

He said the "SEC forgot to read" the transcript from Tesla's earnings call, which he says "clearly states 350k to 500k."  If Musk is found in contempt of court, he could be forced to pay a fine.

Additional reporting from  Newsy affiliate CNN .

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