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Elon Musk in court to fight the SEC

Judge Alison Nathan said on Thursday that it would be time to renegotiate and clarify parts of an agreement from 2018 that required stricter monitoring of Musk's social media. The deal has been at the heart of a month-long shutdown between tech billionaire and federal securities regulators.The SEC had requested that the court hold Musk contempt for violating an agreement requiring him to receive prior social media approvalNathan told both sides during a hearing in New York on Thursday.Nathan essentially raised the issue of Thursday by asking Musk and SEC to go back to the drawing board and better define exactly how and when Musk's tweets need to be reviewed. Musk, who was present for Thursday's hearing, told the reporters afterwards that he was "very impressed" with Judge Nathan. He left the courthouse in a Tesla. If Nathan ultimately sides with regulators and keeps Musk in contempt, he could face another great fine and additional boundaries for his social media. The judge could refrain from Musk from the CEO site, although she is not expected to steer it hard. Nathan may also throw out the settlement with the SEC, effectively resuming the agency's disputes with Musk and Tesla. SEC claims Musk broke his business decision in 201 8 when he said in a February 19 tweet that Tesla will make about 500,000 cars in 2019. Hours later, he wrote another tweet that said the company will actually deliver 400,000 cars this year. Although Musk corrected the mistake, the regulator said…

Judge Alison Nathan said on Thursday that it would be time to renegotiate and clarify parts of an agreement from 2018 that required stricter monitoring of Musk’s social media. The deal has been at the heart of a month-long shutdown between tech billionaire and federal securities regulators.

The SEC had requested that the court hold Musk contempt for violating an agreement requiring him to receive prior social media approval

Nathan told both sides during a hearing in New York on Thursday.

Nathan essentially raised the issue of Thursday by asking Musk and SEC to go back to the drawing board and better define exactly how and when Musk’s tweets need to be reviewed.

Musk, who was present for Thursday’s hearing, told the reporters afterwards that he was “very impressed” with Judge Nathan. He left the courthouse in a Tesla.

If Nathan ultimately sides with regulators and keeps Musk in contempt, he could face another great fine and additional boundaries for his social media. The judge could refrain from Musk from the CEO site, although she is not expected to steer it hard. Nathan may also throw out the settlement with the SEC, effectively resuming the agency’s disputes with Musk and Tesla.

SEC claims Musk broke his business decision in 201

8 when he said in a February 19 tweet that Tesla will make about 500,000 cars in 2019. Hours later, he wrote another tweet that said the company will actually deliver 400,000 cars this year.

 Why Tesla Needs Elon Musk

Although Musk corrected the mistake, the regulator said he had “re-published erroneous and material information about Tesla to his over 24 million Twitter supporters,” according to court documents . Musk has denied wrongdoing and accused the SEC of trying to make freedom of speech.

Tesla had agreed to set up a board committee to monitor Musk’s posts. In a court application, Tesla admitted that Musk did not receive prior approval from someone in that committee for his February records, but the company has then claimed that he did not need it.

Musk’s standoff with the SEC started last year when he claimed in a tweet that he “considered” to take Tesla private at $ 420 per share and that he had secured financing for the deal. It sent Tesla’s stockpile.

But the secretary later said that the funding was not secured, and the agency accused him of a trial of misleading investors. Musk initially noticed that he would fight the agency, but a few weeks later, regulators announced that he and Tesla had agreed to settle contracts that saddled them with $ 40 million in fines and demanded that Musk go down as the company’s president. He retained the role of CEO.

 Elon Musk arrived at a federal court in Manhattan before the hearing.

Since that agreement was reached in October, Musk has openly spotted the SEC, suggested that its monitoring is “broken” and said he did not “respect” the agency.

Musk also said in a December 60 interview “he would not allow all his tweets to be proofread, but he insisted that he planned to comply with the terms of the deal from” respect “to the” legal system. ” 19659007] After entering the wrong tweet in February, the SEC hit back by posting a new suit asking a federal judge to hold him in contempt. The agency claimed Musk had not “done a diligent or good faith effort” to follow the deal and pointed to his “60 minute” interview as evidence he didn’t take the terms seriously.

The escalating situation and other irregular behavior of Musk, many investors left wondering what it would mean for Tesla if the famous CEO group was ousted from the company. A Barclays analyst suggested Tesla’s share has a $ 130 “Musk premium”, which may disappear if he leaves.

Elliot Lutzker, a securities attorney at Davidoff Hutcher & Citron LLP and a former secretary of the SEC, said on Thursday that he believes the court will consider Tesla’s well-being to decide whether or not to punish Musk.

“The court does not want to harm Tesla shareholders”, Lutzker told CNN Business in an email on Thursday.


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