Published: Fri, March 15, 2019
Economy | By

Elon Musk's Defence of His Tesla Tweet Will Get US SEC Response

Elon Musk's Defence of His Tesla Tweet Will Get US SEC Response

Two weeks ago, Musk said Tesla would start closing some of its 378 stores and service centers globally and move sales to online channels in a bid to reduce costs.

Tesla has only released a handful of teaser images of its compact electric SUV, none of which offer us a great look at it. Further, Musk has attempted to comply with the settlement by tweeting less - showing that he's taken it seriously.

The legal team has argued that the SEC's action is unwarranted and should be viewed as "retaliation" for Musk's statement that "I want to be clear, I do not respect the SEC" in an interview with 60 Minutes.

The US Securities and Exchange Commission had asked the court to hold Musk in contempt, saying his February 19 tweet violated a September fraud settlement barring him from sharing material information about Tesla on social media without the company's pre-approval.

Lawyers for Elon Musk have issued a defense of the Tesla CEO's tweet on February 19th, 2019 against the SEC complaint that the tweet violated the terms of Musk's earlier settlement with the regulator.

Prices of the Model 3 vary, but the company recently began producing a $35,000 standard model. Tesla stated that the people holding the reservation will possibly be getting the auto in near 4 weeks. Musk followed up hours later with another tweet where he corrected himself, adding that he meant to say Tesla will make cars at a fast enough rate to be able to make 500,000 in a year. This wasn't always going to be the case, as Musk previously said that it would utilize a bespoke platform. Tesla's counsel reviewed the tweet after it was posted. Musk stated that Tesla will prioritize the customers who hold the reservation and waiting for the base version. Tesla declined to comment on the report. The agency filed suit against him in the Southern District of NY on September 27th.

As part of that settlement, Musk stepped down as the company's chairman and he and Tesla agreed to pay US$20 million each in fines.

Tesla is known to have missed production targets before, though, so there's a chance things may change.

Musk spent the next few months teasing the SEC, calling it the "Shortseller Enrichment Commission", and saying in a December 60 Minutes interview that he still planned to tweet what he wanted.

However, Musk doesn't seem to agree with the SEC's allegations this time.

Lawyers for Musk have accused the SEC of overreach, arguing the push to hold him in contempt of court over his Twitter post infringes on his First Amendment rights.

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