Date
20 July 2019
The US securities regulator has asked a judge to hold Tesla boss Elon Musk in contempt for violating last year's settlement deal with the agency. Photo: Reuters
The US securities regulator has asked a judge to hold Tesla boss Elon Musk in contempt for violating last year's settlement deal with the agency. Photo: Reuters

SEC asks judge to hold Musk in contempt for violating deal

The US Securities and Exchange Commission on Monday asked a judge to hold Tesla CEO Elon Musk in contempt for violating last year’s settlement with the federal agency, Reuters reports.

Pointing to a Feb. 19 tweet by Musk which read “Tesla made 0 cars in 2011, but will make around 500k in 2019,” the regulator noted that Musk did not seek or receive pre-approval prior to publishing the tweet, which was inaccurate and disseminated to over 24 million people.

Musk thus violated last year’s settlement by engaging in the very conduct that the preapproval provision of the final judgment was designed to prevent, according to the regulator.

A US judge in October approved the settlement between the federal regulator, Tesla and Musk, over his tweets promising to take the company private.

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CG/RC

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