US Securities and Exchange Commission took action after Musk tweeted on February 19 that Tesla would make 500,000 cars in 2019 -- up from the 400,000 that the company had estimated.
Musk also blasted the agency in a December “60 Minutes” interview where he acknowledged his tweets were not being reviewed.“I want to be clear. I do not respect the SEC,” he said. “I do not respect them.” Six days later, the SEC asked Nathan to hold Musk in contempt for violating the settlement, arguing that Musk had not made “a diligent or good-faith effort” to honor the commitment to seek review for a statement that could be “material,” or consequential to investors.
Musk’s attorneys also accused the SEC of an “unconstitutional power grab” that flouted Musk’s free speech rights and “smacks of retaliation and censorship” over the executive’s remarks on “60 Minutes.” He said the court could impose a sanction short of the CEO’s removal but that a contempt finding could be used later to oust him if Musk continues to act out.
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