The Securities and Exchange Commission has called on a federal judge to sentence Tesla CEO Elon Musk for sending an inaccurate tweet, as a court document today presented in the southern district of New York.
According to SEC officials, Musk violates the rules of an agreement reached last autumn to use Twitter to disclose financial information about the electric car maker. As part of the agreement, Musk resigned as chairman of the company, but remained its CEO. He also agreed to seek legal approval before tweeting something that could significantly affect Tesla. An agreement that Musk himself had made [609    [Dezember 2009] had not been implemented.
Musk had initially violated the rules of disclosure of funds when he received funding from private individuals last August for Tesla. The tweet in question today was released on February 1[ads1]9, where Musk said Tesla will produce 500,000 cars this year . Tesla had officially advised investors that they would only be able to produce a maximum of 400,000 cars in 2019 just a few weeks earlier.
By the end of 2019, an annualized production rate is likely to be around 500,000, or 10,000 cars per week. Deliveries for the year still amounted to about 400,000.
– Elon Musk (@elonmusk) February 20, 2019
According to the US Securities and Exchange Commission, Musk has allegedly not received approval for this tweet from Tesla's legal advisor, as under the Settlement Rules. Three days after it was submitted, the SEC, along with Telsa's attorneys, confirmed that no one had checked them.
Tesla's lawyer worked with Musk to correct the original tweet in a follow-up, according to the SEC's document. However, Musk's initial projection may still be considered a violation, as the information could be considered material to Tesla's shareholders – and lawyers did not see that before sending Musk. Tesla's General Counsel left the company after just two months last week just after the incident.
The SEC may have been looking for a slip-up from Musk who has been engaging in some puzzling online antics in recent months. Since the settlement, the outspoken CEO has used press interviews and his Twitter account to publicly denigrate the SEC by announcing 60 Minutes in the same interview, in which he admitted that he does not pre-approve his tweets He does not respect the agency and has hand-picked his replacement for the chairman of the board of Tesla. In October, shortly after the settlement announcement, Musk described the agency on Twitter as a "Short Sales Enrichment Commission".
Earlier this month, Twitter CEO Jack Dorsey said that Musk was Twitter's "favorite" because he "talks openly about his thoughts." "