SEC seeks contempt charges against Tesla CEO Musk

Elon Musk, CEO of SpaceX and Tesla Inc., Photo Date: April 8, 2016 / Photo: NASA / Kim Shiflett / MGN
By  | 

SAN FRANCISCO (AP) - Stock market regulators are asking a federal court to hold Tesla CEO Elon Musk in contempt for violating an agreement requiring him to have his tweets about key company information reviewed for potentially misleading claims.

The request made Monday in New York resurrects a dispute between the Securities and Exchange Commission and Musk that was supposed to have been resolved with a settlement reached five months ago.

The SEC had sued Musk for using his Twitter account to announce he had secured financing for a potential buyout of Tesla, something regulators alleged wasn't true.

Musk agreed to having future tweets that could affect Tesla's stock be pre-approved. But the SEC contends Musk didn't do that in a Feb. 19 tweet projecting the number of cars Tesla will make this year.

(Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)