NEW YORK: Lawyers for Tesla Inc Chief Executive Elon Musk will argue on Thursday that he did not violate a fraud settlement with the U.S. Securities and Exchange Commission and should not be held in contempt, the latest twist in a high-profile battle between the billionaire and the government.
Musk has countered that the information was not material, and did not need to be vetted. It is unclear whether Musk will appear at the hearing. Musk's lawyers countered that the earlier tweet merely restated a forecast he had given on Jan. 30, when he said Model 3 production could total 350,000 to 500,000 vehicles.
It is rare for the SEC to seek a contempt finding, though some legal experts said the regulator has a strong case over Musk's earlier tweet. "We have to understand that Tesla is at a very important point in its history, and I don't think any judge would want to be viewed in hindsight as the cause of the demise of Tesla," he said.
That tweet sent Tesla's share price up as much as 13.3 percent. Musk's privatization plan was at best in an early stage, however, and financing was not in place.
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