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SEC asks judge to hold Tesla’s Musk in contempt of violating deal

ITN News Editor
By ITN News Editor February 26, 2019 15:02

SEC asks judge to hold Tesla’s Musk in contempt of violating deal

The U.S. Securities and Exchange Commission said a federal court should hold Tesla Inc Chief Executive Officer Elon Musk in contempt for violating last year’s settlement with the federal agency due to new statements made on Twitter, sending shares of the electric carmaker down 5 percent in extended trade.Musk, Tesla, and the SEC last year settled a lawsuit filed by the federal agency over the CEO’s tweets in August that he planned to take the company private. As part of that settlement, any material statements made by Musk on social media was to be vetted by the company.

The regulator pointed to Musk’s Feb. 19 tweet: “Tesla made 0 cars in 2011, but will make around 500k in 2019,” noting that Musk did not seek or receive preapproval before publishing this tweet, which was inaccurate and disseminated to over 24 million people.

ITN News Editor
By ITN News Editor February 26, 2019 15:02

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