Tesla Falls Midday as Musk Tweets Production Forecasts

Irving Hamilton
April 15, 2019

The SEC needs Nathan to Musk for violating a settlement requiring his tweets to be approved by a lawyer should they disclose company facts that are significant.

Musk, who followed closely back-and-forth closely with a slight frown and furrowed eyebrow, appeared from the court to state:"I'm very happy with the result and I am impressed with Judge Nathan's analysis".

In the recent tweet on February 19 that inspired the contempt proceedings, Musk said, "Tesla made 0 cars in 2011, but will make around 500k in 2019." according to the terms of the earlier settlement, and was inaccurate.

SEC attorney Cheryl Crumpton recommended fines for Musk if Nathan finds him in contempt of the October settlement. Musk's attorneys say he did not violate the compensation.

The order comes after Nathan urged both sides to agree at a hearing on Thursday in NY that Musk attended.

Both the Panasonic and the next-12-months production tweets are noteworthy in light of the settlement that sprang from Musk tweeting in August of past year about trying to take Tesla private.

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Musk later backed off the idea of taking the company private, but regulators concluded he had not lined up the money to pull off the deal.

Attorney John Hueston said the SEC's very first step after the tweet about production should have been to approach Tesla in good faith, and Nathan agreed. "He said that his client" really does what he is told". The agency contends that Musk hasn't sought the lawyer's approval for a single tweet.

Shares of Tesla are flat in premarket action at $267.35.

Tesla shares (TSLA) fell as much as 1.7 percent to $263.03 as of 9:38 a.m. Monday in NY trading.

Tesla also said 63,000 vehicles were delivered by it in the quarter, down 31% from the fourth quarter of 2018.

The CEO claims that with the constant adding technology into our vehicles - we are eventually trying to make the auto so autonomous that you can have it taxi other people and earn you money - making our cars "appreciating assets". The stock is down 21 percent this year.

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