Elon Musk Calls SEC Contempt Request a Radical Interpretation of Settlement
Elon Musk fights back against SEC contempt charges by arguing the agency misinterprets his Twitter agreement. He claims his production volume tweet complies with Tesla's internal policies.
Tesla CEO Elon Musk argues in newly filed court papers that his Twitter activity does not violate a prior settlement agreement with the U.S. Securities and Exchange Commission. He describes the SEC's request to hold him in contempt as a "radical interpretation" of the order that is "virtually wrong at every level."
The legal filing reveals that the SEC originally wanted Musk to seek pre-approval for all public statements related to Tesla in any format, but Musk and the company never agreed to those terms. Instead, Musk contends he only needs to follow Tesla's internal policy, which requires pre-approval solely for written communications containing material information.
This escalating conflict stems from a February tweet where Musk stated Tesla would produce around 500,000 cars this year before correcting himself hours later. While the SEC argues this violates the settlement reached after his infamous "funding secured" tweet, Musk insists the production volume information is immaterial and fully complies with the agreement.