SEC has the power to ruin Elon Musk: Judge Andrew Napolitano
The Securities and Exchange Commission has asked the federal court to hold Tesla CEO Elon Musk in contempt for violating its settlement deal.
On February 19, Musk tweeted, “Tesla made 0 cars in 2011, but will make around 500k in 2019.” He continued to say, “Meant to say annualized production rate at the end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be 400k.”
Musk and the SEC made a deal last year requiring the Tesla CEO to get approval from company officials before making statements that could possibly impact the company’s stock price.
Fox News senior judicial analyst Judge Andrew Napolitano explained the potential consequences Musk faces.
“They would fine Tesla and they would tighten the screws on the scrutiny over him, perhaps require him to run his tweets past two people,” he told FOX Business’ Stuart Varney on Tuesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 338.59 | -13.97 | -3.96% |
Although Napolitano said that the violation isn’t cause for incarceration, he stated that they are worried about how Musk could impact the stock.
“They can demonstrate to a federal judge that his behavior is intended to mislead investors.... As long as he doesn’t mislead investors, the SEC will leave him alone,” he said.
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In the past, Elon Musk has stated that he didn’t “respect” the SEC.