Tesla CEO Elon Musk has been ordered to explain why he should not be held in contempt for allegedly violating his settlement agreement with the Securities and Exchange Commission (SEC) by March 11. The deadline was issued by U.S. District Judge Alison Nathan in Manhattan, only one day after the SEC filed its new complaint against the CEO.
Musk, for his part, hasn’t backed down against SEC’s new claims . On Tuesday, he stated that “something is broken with SEC oversight,” after a Twitter follower observed that the bureau ’s moves against Musk harmed TSLA investors over the CEO’s tweets. Musk’s recent tweets, especially his latest statement, haven’t sat with former SEC chair Harvey Pitt. In a statement to CNBC, Pitt stated that Musk has to be punished until he learns to get a handle on his social networking habits.
“We’ve got a CEO who, I guess for want of a better word, is irrepressible. He wants to have a certain amount of repression of his instinctive drive to visit Twitter. So I think that fining him, holding him in contempt and leaving him with strict instructions that if this continues, the punishment will be worse is in order. At least that’s what I would do under the circumstances,” Pitt said.
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Jim Cramer seems to share Pitt’s views. In his latest segment on CNBC‘s Squawk Box, he argued for Musk to be penalized. Cramer also called for Musk to be removed from his post as Tesla’s CEO over his attacks against the SEC.
“Musk goes after the SEC as if it s funny. If this guy will attack the SEC, how about removing him? He attacked the SEC. He is loved by me. He’s a genius. But he should be removed,” Cramer said.
The SEC’s claim against the CEO was rooted in a Musk posted February 19, when he noted that Tesla will make around 500,000” vehicles in 2019. Musk’s tweet echoed among his statements where he estimated that Tesla could create “possibly in the order of 350,000 to 500,000 Model 3s” this year.
A couple of hours after his tweet, Musk explained his statement, explaining that the figure refers to a potential annualized production rate of 10,000 vehicles a day. Musk also stated that deliveries for 2019 are still estimated to be about 400,000.
While Tesla stock (NASDAQ:TSLA) dropped as much as 5 percent after SEC’s claims from Elon Musk were announced, the electric automobile maker’s shares have since fought . As of writing, Tesla shares are trading +0.97percent at $301.67 per share.
Disclosure: I don’t have any ownership in shares of TSLA and don’t have any plans to initiate any positions within 72 hours.
The article Elon Musk gets March 11 deadline from judge, ex-SEC chair calls for Tesla CEO’s punishment appeared first on TESLARATI.com.
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