News

SEC Official Says Tesla CEO Elon Musk Should Face Substantial Fines

This is a timeline from the Associated Press of the latest on Tesla CEO Elon Musk’s legal problems (all times local):

3:10 p.m.

A lawyer for the U.S. Securities and Exchange Commission has told a judge that Tesla CEO Elon Musk should face substantial escalating fines if he keeps violating a deal with the SEC.

Attorney Cheryl Crumpton urged the fines when a judge at a hearing Thursday asked what she wanted the court to do.

The SEC says Musk violated a settlement by tweeting about Tesla’s vehicle production in February without a lawyer’s approval. His attorney says Musk didn’t.

Trending:
Entitled Woman Assaults McDonald's Employees for Refusing Her Special Request, They Fight Back and She Ends Up Leaving in Handcuffs

Musk watched from the defense table after saying outside court he has great respect for the justice system.

The proceeding came as Tesla’s stock price fell after it said 77,000 cars were built in the first quarter, putting it seemingly behind in a bid to produce 500,000 cars this year.

2 p.m.

Elon Musk and his lawyers were appearing before a federal judge in New York who will decide whether the Tesla CEO should be held in contempt of court for violating an agreement with the U.S. Securities and Exchange Commission.

Does Elon Musk deserve more than a fine?

Musk said Thursday as he entered a courthouse in Manhattan that he has great respect for the justice system and thinks judges in the American system are outstanding.

The judge began hearing arguments at around 2 p.m.

The SEC says Musk violated a settlement with the SEC when he tweeted about Tesla’s vehicle production in February without a lawyer’s approval.

A previous tweet about a possible plan to take the company private led to the original round of problems with the SEC.

As of Wednesday’s close, Tesla shares were down 12.3% so far this year.

Related:
Buying Stocks on Margin Has Exploded - One More Sign of a Coming Crash?

___

9:40 a.m.

A federal judge will hear oral arguments Thursday about whether Tesla CEO Elon Musk should be held in contempt of court for violating an agreement with the U.S. Securities and Exchange Commission.

The SEC says Musk violated the settlement when he tweeted about Tesla’s vehicle production in February without a lawyer’s approval.

It was unclear whether Musk plans to attend the hearing.

Meanwhile, Tesla’s shares were falling nearly 10% in early trading after the company said it churned out 77,100 vehicles in the first quarter, well behind the pace it must sustain to fulfill Musk’s pledge to manufacture 500,000 cars annually.

Tesla also said it only delivered 63,000 vehicles in the quarter, down 31% from 2018’s fourth quarter.

As of Wednesday’s close, Tesla shares were down 12.3% so far this year.

Truth and Accuracy

Submit a Correction →



loading

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
, , , ,
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




loading

Conversation