Elon Musk and SEC to resolve dispute outside court
Tesla Motors Inc
$170.18
13:10 25/04/24
Judge has ordered Tesla CEO Elon Musk and the US Securities Exchange Commission to work out an agreement regarding his social media posts on the company outside court.
Nasdaq 100
17,430.50
12:15 25/04/24
"Take a deep breath, put your reasonableness pants on, and work this out," District Judge Alison Nathan said during the hearing.
The Tesla chief told reporters outside the Manhattan Federal Courthouse that he was "very happy" over the outcome of the SEC's latest complaint against him.
This, the second time the commission has taken Musk to court, the SEC said he broke the earlier settlement by tweeting the company would make 500,000 cars and later on correcting himself by saying it would be around 400,000.
Musk said that “the tweet in question was true, immaterial to shareholders, and in no way a violation of my agreement."
The first time the SEC he was taken to court, the SEC claimed Musk had misled investors by saying he had secured funding for the company to go private, when it turned out he had not. The conflict ended with Musk having to step down as Tesla chairman and pay a $20m fine.
The judge gave both parties two weeks to reach an agreement. If they don’t do so by that time she will have to decide.