Update: The SEC lawyer’s tried to blame Tesla. Alleging that they failed to control the CEO. Judge Nathan, asked the SEC lawyer if Musk would need to get approval for tweets that reiterated information that had already been disclosed. The judge went through different “Hypotheticals” with the SEC Lawyers, (Such as repeating earlier guidance.) And their responds was “We’re not saying always yes or always no to that. “It depends is the answer,” SEC Lawyers responded. This to me sounds like what Elon Musk has been saying all along, they are trying to use their powers to determine what is right and what is wrong. They can’t make up their minds or have rules in black and white for people to read and understand.
Elon’s lawyers responded: There is not a clear enough standard to use the harsh recourse of contempt. They went on to state that the SEC should have attempted to work things out with Elon Musk and Tesla before bringing the matter to court. I would have to say that I agree with Elon’s lawyers and the judge in this case, they wasted time of everyone and should of sat down with all parties and laid down ground rules, but instead they ran straight to the judge to “tattle” on Elon.
A federal judge has giving Tesla CEO Elon Musk and the US Securities and Exchange Commission just two weeks to settle their differences.
The SEC had asked the court to hold Musk in contempt for violating an agreement that requires he get pre-approval for social media posts about the electric car company.
“Put your reasonableness pants on!”
“Put your reasonableness pants on,” Nathan told both sides during a hearing in New York on Thursday.
Nathan essentially punted the issue on Thursday by asking Musk and the SEC to go back to the drawing board and better define exactly how and when Musk’s tweets need to be reviewed. Musk, who was present for Thursday’s hearing, told reporters afterward that he was “very impressed” with Judge Nathan. He left the courthouse in a Tesla.
For those of you wondering, The judge could oust Musk from the CEO seat, although she is not expected to rule that harshly. The judge could also toss out the settlement altogether with the SEC, effectively reopening the agency’s litigation against Musk and Tesla.
The SEC says, Musk violated their 2018 settlement deal when he tweeted that Tesla will make around 500,000 cars in 2019. Hours later, he posted another tweet that said the company will actually deliver 400,000 cars this year.
Musk then corrected his mistake, regulators said he had “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers,” according to court papers. Musk has denied wrongdoing and accused the SEC of trying to stifle free speech.
Musk’s battle with the SEC started last year, when he claimed in a tweet that he was “considering” taking Tesla private at $420 a share and that he had secured funding for the deal from a private investor over seas. That sent Tesla’s stock surging. But the SEC later said funding was not, in fact, secured, and the agency accused him in a lawsuit of misleading investors. Musk initially signaled that he would fight the agency, but weeks later regulators announced that he and Tesla had agreed to settlement deals that saddled them with $40 million in fines and required Musk to step down as the company’s chairman. He retained the role of CEO.
I hope that the SEC and Elon Musk come to some sort of agreement and draw out the rules in black and white. And stop nit picking all of what Elon says and does. One thing we can expect is for Elon Musk to keep “Trolling” his twitter follows with more funny tweets.