REUTERS/Aly Song/File Photo
- The SEC on Monday accused Tesla CEO Elon Musk of violating his agreement stemming from last year’s attempt to take the company private.
- A judge said Tuesday that the billionaire has until March 11 to explain why he should not be found in contempt.
- Musk mocked the agency once again on Twitter following the allegations, saying something is "broken" at the stock regulator.
On Monday, the SEC — the US’ top stock market regulator — accused Musk of violating his agreement with the agency stemming from his failed attempt to take the automaker private.
That $20 million settlement was breached, the SEC claims, when Musk last week tweeted projected production numbers for Tesla that differed from the company’s regulatory disclosures. Shortly after, Musk clarified his tweet.
"Musk did not seek or receive pre-approval prior to publishing this tweet, which was inaccurate and disseminated to over 24 million people," the SEC said in a filing with the US District Court for the Southern District of New York.
"Musk has thus violated the court’s final judgment by engaging in the very conduct that the pre-approval provision of the final judgment was designed to prevent."
A Tesla spokesperson declined to comment on the SEC filing Monday.
On Tuesday, Musk showed little sign of backing down from his previous disputes with the federal regulator.
"SEC forgot to read Tesla earnings transcript, which clearly states 350k to 500k. How embarrassing …," Musk tweeted Monday evening. And on Tuesday morning he followed up by saying that ‘something is broken’ at the SEC.
Read more about Tesla and Elon Musk:
- Elon Musk criticized federal regulators on Twitter and said the $20 million fine he paid over his ‘funding secured’ tweet was ‘worth it’
- Tesla’s board is terrible at its job — it’s shown it has no interest in controlling Elon Musk or sticking up for investors
- Elon Musk can help pick his replacement as chairman of Tesla — despite complaints he already has too much sway over its board
- Tesla’s board is so bad at its job that it failed at the one thing it says is paramount: protecting CEO Elon Musk
- Elon Musk says ‘something is broken’ at the SEC after the agency asked a judge to hold him in contempt of court
- The CEO of China’s largest electric-car company compares Tesla to high fashion — and says his company is the ‘girl next door’
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