“The tweet dispute has to be settled between you,” says the Judge to the SEC and the Tesla chief Elon Musk.
Tesla CEO Elon Musk is known for his controversial Twitter habits. The electric-car maker has been repeatedly getting into trouble. This time, Judge Nathan had given the two parties two-week time to settle their dispute.
The SEC had held Musk in contempt for violation of agreement over a tweet. Judge Alison Nathan had, however, ordered both of them to resolve their disputes.
Tesla chief Elon Musk had tweeted about manufacturing 50,000 cars by the end of 2019, but after a few hours, he had given a follow-up correction saying that 50,000 was the expected production rate, but the company will deliver 400,000 vehicles for the year.
The first time when Musk had said that he was taking Tesla private, the SEC had sued him for false and misleading information to the general public about his company. Further, Musk had to pay a fine of $20 million, apart from stepping down from his post as chairman of his company. Musk was also asked to seek pre-approval over tweets containing material information about his company by one of the company’s lawyers before posting them.
The latest tweet that has now caused controversy is over the production outlook of 500,000 vehicles from Tesla for this year, which the SEC calls as “inaccurate material information”.
But Musk had argued that the information was immaterial to the company. In fact, he has made a tweet again saying that his statement was immaterial to shareholders and he is pleased with the decision made by Judge Nathan. Musk says that he has not violated any agreement made with the SEC.
When Musk was fined $20 million for the earlier tweet, he had said that it was “worth it”. Now the SEC is considering imposing higher fines against him for the current tweet.