(Reuters) – Elon Musk's lawyers said the US Securities and Exchange Commission failed to satisfy its heavy burden of demonstrating that Tesla Inc's chief executive was contemptuous and the tweet telling his contempt was both correct and not material. "
In a Friday negotiation in the Manhattan federal court, Musk's lawyers also said that their client" respects their obligations "to the electric car company, its shareholders and the court.
Mr. Musk tries to avoid being disdained to break his anti-fraud fight in October 2018 with the SEC, to have tweeted at 7:15 pm EST on February 19 to its over 24 million Twitter followers that Tesla could build around 500,000 vehicles in 201
SEC spokesman Ryan White refused to comment.
Mr. Muske's settlement, including a fine of $ 20 million for both him and Tesla, resolved a SEC trial over a August 7, 2018, Twitter post where Mr Musk said he had "funding secured" to take his Palo Alto, California-based companies private at $ 420 per share.
The SEC said that Mr Musk committed a "blatant" violation of that deal by tweeting about Tesla's production prospects without first seeking approval from company lawyers.
During a Monday negotiation, the SEC went further, complaining that Mr Musk had never after the conciliation sought prior approval for some Tesla related tweets.
But last Friday's submission, Mr Musk's lawyers said SEC had admitted during settlement negotiations that Tesla-related tweets were not
They also said that the tweet was not essential because the simply revised old news, used generalities, was "ambitious and optimistic "and did not move Tesla's share price.
"He's the main issue of Musk following Tesla's policy, not whether the SEC is satisfied with Tesla's policy," says Mr Musk's lawyers. "Musk's belief that at 7:15 did not require prior approval was correct."
Mr. Musk until March 26, to tell the US district director Alison Nathan if he wants an evidential hearing on the contempt movement, the SEC said no hearing was required.
The October Treaty required Musk to go down as Tesla's chairman. that a contemptuous statement could lead him to higher fines, further limitations of his business or even removal from the Tesla board or as managing director.
Tesla shares closed Friday down $ 9.49 or 3.5%, to 264 $ 53 They are 32% below their highest set on August 7 after the "funded secured" tweet.
The case is SEC v. Musk US District Court, Southern District of New York, no. 18-08865.