SEC Asks Judge To Hold Tesla's Elon Musk In Contempt
PALO ALTO (CNN) -- The Securities and Exchange Commission has asked a federal judge to hold Tesla CEO Elon Musk in contempt of a settlement deal reached last year.
The request from regulators in a court filing Monday sent the carmaker's stock plummeting more than 4% after hours.
The US government's ask is tied to a claim from Musk on Twitter last week that "Tesla made 0 cars in 2011, but will make around 500k in 2019."
Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k.
— Elon Musk (@elonmusk) February 20, 2019
Regulators say that Musk did not ask for or receive pre-approval before publishing the tweet, per the terms of the settlement agreement.
He later had to send a follow-up tweet indicating that the company will actually deliver just 400,000 cars this year.
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