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Tesla stock down after SEC takes issue with Elon Musk tweet

Tesla stock dropped Tuesday after the Securities and Exchange Commission asked a judge to hold CEO Elon Musk in contempt over a recent tweet.

Tesla shares dipped about 2 percent to $292.25 a share early Tuesday, a day after the SEC filed a claim against Musk for not complying with the agreement reached with the Wall Street regulatory agency last year. 

Tesla stock had ended Monday up $4.06 a share, or 1.38 percent, at $298.77, before the SEC filing, which pointed to a Feb. 19 tweet in which Musk wrote: “Tesla made 0 cars in 2011, but will make around 500k in 2019.”

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SEC-Musk Controversy: SEC asks judge to consider holding Tesla CEO Elon Musk in contempt of court over tweet

Musk relinquished his role as Tesla chairman last year after the SEC filed a civil lawsuit accusing him of lying or recklessly misleading. In a deal between the Tesla CEO and the SEC, Musk agreed to “seek pre-approval of any written communications, including social media posts, that contained or reasonably could contain information material to Tesla or its shareholders.”

However, in the Monday court filing, the SEC said that Musk “did not seek or receive pre-approval” before publishing the Feb. 19 tweet, “which was inaccurate and disseminated to over 24 million people.”

Tesla did not immediately respond for USA TODAY’s request for comment.

Follow USA TODAY intern Ben Tobin on Twitter: @TobinBen

Read or Share this story: https://www.usatoday.com/story/money/2019/02/26/tesla-stock-down-elon-musk-tweet-sec/2988685002/




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