SEC says Musk's contempt defence 'borders on the ridiculous'

Tesla CEO Elon Musk speaks before unveiling the Model Y at Tesla's design studio Thursday, March 14, 2019, in Hawthorne, Calif. DETROIT -- U.S. securities regulators countered Tesla CEO Elon Musk's contempt-of-court defence Monday night, writing in court papers that he brazenly disregarded a federal judge's order and that one of his arguments "borders on the ridiculous."

SEC lawyers led by Cheryl Crumpton wrote in a response to Musk's defence that he interprets the settlement order as not requiring pre-approval unless Musk decides the tweets are meaningful to investors. The agency said Musk's argument that tweeting about car production forecasts on Feb. 19 wasn't material information is nearly ridiculous.

The lawyers also accused the Securities and Exchange Commission of censorship and of violating Musk's First Amendment rights by imposing a prior restraint on his speech. Monday's filing said the Feb. 19 tweet was different from prior public disclosures by the company. Also, Musk has regularly published tweets with "substantive information" about the company and its business, the SEC contended.

Hes losing his mind slowly

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