Elon Musk, SEC get more time to resolve fight over Tesla tweets

Elon Musk, SEC get more time to resolve fight over Tesla tweets

Musk originally sparked the conflict back in September, when he tweeted that he was consider taking Tesla private at $US420 per share, adding that funding was secured.

The settlement was reached a year ago after Musk tweeted he had secured funding to take Tesla private even though he had not.

In a regulatory filing, the company said that Brad Buss, Antonio Gracias, Stephen Jurvetson, and Linda Johnson Rice would not be standing for re-election in the annual meetings of stockholders this year and next.

SEC attorney Cheryl Crumpton urged that U.S. District Judge Alison J. Nathan fine Musk if she discovers him in contempt for violating a deal with the SEC that needs him to clean tweets that might disclose important company details with attorneys. But their dispute is far from over: The SEC has since accused Musk of flouting other settlement terms and is looking to hold him in contempt.

In the runup to the decision on the delay, Musk defended his February tweet about the vehicle production target, saying he was just repeating information that Tesla had already disclosed.

"While we have not reached an agreement, counsel for the SEC, Mr. Musk, and counsel for Tesla met and conferred for over an hour by telephone earlier this week and are continuing to discuss potential resolution", the filing reads. After an investigation, the SEC sued, saying Musk had misled investors.

Nathan pushed Crumpton through the hearing to define the conditions under which approval should be sought by Musk before he tweets, also attracted attention to surrounding the principles that the SEC sought to enforce.

Gracias has been an independent director at Tesla since 2010.

The 13-word tweet said Tesla would produce around 500,000 vehicles this year.

If shareholders vote to reduce director terms to two years, venture capitalist Stephen Jurvetson - who returned from an extended leave of absence this month - has indicated he would not seek re-election in 2020.

As of Thursday's close, Tesla stocks were down 19.5percent up to now this year. The SEC did not respond to requests for comment on that tweet.

Funding was anything but secured, it was later revealed, and the kerfuffle resulted in two, $US20 million settlements between both Tesla and Musk with the SEC.

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