The lawyers for CEO of Tesla, Elon Musk, hit back at the Securities and Exchange Commission late on Monday. They argued on the fact that an attempt to hold Musk in contempt of court for a post on Twitter a month ago, violated his rights for First Amendment. Through a filing on Monday night, the lawyers of Musk said that their client’s tweet was in compliance with the terms and conditions of a settlement agreement formed in September with the SEC. The lawyers further said, since the passing of that order, Elon Musk has reduced his general tweets and particularly about Tesla quite dramatically.
On 19th February, Musk had tweeted that Tesla did not make any car in the year 2011 but would make close to 500,000 cars in the year 2019. Now, Elon Musk made the tweet a year ago that he had managed to secure the required funds to convert Tesla into a private entity. Right after this, his settlement with the Securities and Exchange Commission needed more controls as well as procedures in place to look into the communications that are carried out by Musk. The Commission said that the tweet from Musk on 19th Feb was not accurate and moreover, neither he took permission nor receive pre-approval before publishing it.
Elon Musk had time until Monday to explain why he must not get held in contempt of court. The CEO’s lawyers made their argument that this push from SEC was to crush their client’s First Amendment rights and allow the Commission to exercise greater powers than they are actually authorized by Congress. As on Tuesday morning, the stock of Tesla was trading at a down of around 2.2%, whereas the S&P 500 was slightly on the higher side.