Published: Fri, March 15, 2019
Finance | By Loren Pratt

Elon Musk shoots down USA regulator's complaint about his Tesla tweet

Elon Musk shoots down USA regulator's complaint about his Tesla tweet

Unfazed by the fact that he's now legally feuding with the SEC for tweets regarding business operations at Tesla, Musk again took to the social media site on Tuesday to explain that Tesla "shouldn't have offered" lower prices on Model S and Model X vehicles. On February 25, Musk said in a tweet, "SEC forgot to read Tesla earnings transcript, which clearly states 350k to 500k".

Tesla Inc Chief Executive Elon Musk shot back against U.S. securities regulators on Monday, arguing in a filing that his recent tweet about the electric vehicle maker's production volume did not violate his fraud settlement and he can not be held in contempt.

On March 11, Musk's lawyer argued in a response that Musk didn't violate the settlement and that there was no "clear and convincing evidence" to prove the violation. Musk had till Monday to clarify why he shouldn't be held in contempt of courtroom.

Tesla has only released a handful of teaser images of its compact electric SUV, none of which offer us a great look at it. The company claims that its new V3 Supercharger, once rolled-out extensively, will cut down the amount of time spent by customers on charging their auto by half.

Stated simply, Tesla has now gone back on all of the major business model changes it made just about two weeks ago, further exposing a company that can only be described as in the midst of anarchy. Musk followed up hours later with another tweet where he corrected himself, adding that he meant to say Tesla will make cars at a fast enough rate to be able to make 500,000 in a year.

In February, the SEC "asked a judge to hold Musk in contempt for violating a settlement" with his February 19 tweet, Bloomberg reported. This wasn't always going to be the case, as Musk previously said that it would utilize a bespoke platform.

In it, Musk's lawyers claim the tweet didn't violate the terms of the SEC settlement at all and that Musk takes his obligations under the settlement more seriously than the SEC gives him credit for. Musk had only held a few exploratory meetings with Saudi Arabia's Public Investment Fund, and had no funding in place when he sent that tweet, which temporarily sent Tesla's stock price soaring. Most units sold globally should be built here, but reports assert that Tesla will also build its baby electric SUV at a new Gigafactory in Shanghai, China for the local market. It's also worth noting that Tesla has missed production goals in the past. "Musk never consented to and would not consent to such a sweeping gag order".

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