Mon. Sep 16th, 2019

The Securities and Exchange Commission orders the judge to hold Elon Musk as a result of the violation

The Securities and Exchange Commission ordered the judge for holding Tesla Incorporation, The Chief Executive Officer and the founder of the Tesla Incorporation, Mr. Elon for violating the settlement deal which was previously decided. The share price of the firm was around 1.5 percent lower on the morning of Monday, but if later bouned back to the green mid-day.

Musk stated that the firm made 0 vehicles back in 2011, and expecting to make over 500k in the current year.

The Securities and Exchange Commission stated in the filings of the court that he didn’t get the required approval to publish the tweet. This tweet got to more than 24 million people. The Musk in response to this stated that: “SEC forgot to read Tesla earnings transcript, which clearly states 350k to 500k. How embarrassing …”

Musk has around 6 more days left to convince the court not to impose the penalty.

According to the SEC filing: “Musk and Tesla state that, since Tesla’s Policy was implemented in December 2018, Musk’s tweets have been reviewed after their publication, but there is no suggestion that Musk has sought or obtained pre-approval of any tweet prior to publishing it.”

The SEC concluded in the following words: “For all the reasons stated, the SEC respectfully requests that the Court enter an order to show cause why Defendant Elon Musk should not be held in contempt of the Court’s October 16, 2018 Final Judgment.”

This is not the first time; Mr. Elon Musk has faced such issues with the SEC. In the previous year, Mr. Musk faced issues for proposing Tesla to go private. This move gave rise to numerous questions and fears, mainly about the funding. But soon after these, Elon Musk abandoned the plans and the firm kept public.

The charges were settled rapidly and Elon Musk and Tesla were to pay a fine of 20 Million US Dollars. He was also taken the title of chairman and required approvals before he tweets.