Legal professionals for Tesla CEO Elon Musk fired again on the Securities and Alternate Fee late Monday, arguing that a push to carry Musk in contempt of court docket for a Twitter put up final month infringed on his First Modification rights.
In a filing Monday night time, Musk’s legal professionals stated Musk’s tweet complied with the phrases of a September settlement agreement between the Tesla founder and the SEC. “Since the entry of the Order, Musk has dramatically diminished his quantity of tweets typically and relating to Tesla specifically,” his attorneys stated. “This self-censorship is reflective of his dedication to adhering to the Order and avoiding pointless disputes with the SEC.”
On Feb. 19, Musk tweeted: “Tesla made 0 automobiles in 2011, however, will make around 500k in 2019.” Following Musk’s Twitter submit final 12 months that he had “funding secured” to take Tesla non-public, a settlement with the SEC “required extra “controls and procedures to supervise Musk’s communications.” The SEC said Musk’s Feb. 19 tweet was inaccurate, and that he didn’t search nor obtain pre-approval previous to publishing. Musk had till Monday to clarify why he shouldn’t be held in contempt of courtroom.
Musk’s legal professionals argued this push was an “invitation to trample on Musk’s First Modification rights and grant the SEC far broader powers than approved by Congress.”