Elon Musk Faces U.S. Contempt Claim for Violating SEC Accord
- Tweets prompt request for court hearing on Musk’s actions
- ‘Something is broken with SEC oversight,’ Tesla CEO writes
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Elon Musk is facing a new round of regulatory trouble for tweets about Tesla Inc., raising fresh concerns about the chief executive officer’s ability to keep his impulses in check and responsibly run a public company.
The U.S. Securities and Exchange Commission on Monday asked a judge to hold Musk in contempt for violating a settlement that required him to get Tesla’s approval before communicating material information to investors. He breached that deal with a Feb. 19 tweet that said Tesla would make about half a million cars in 2019, the agency claims. The CEO posted a few hours later that deliveries would only reach about 400,000.