The Latest: SEC says Tesla CEO should face substantial fines

NEW YORK (AP) — The Latest on Tesla CEO Elon Musk’s legal problems (all times local):

3:10 p.m.

A lawyer for the U.S. Securities and Exchange Commission has told a judge that Tesla CEO Elon Musk should face substantial escalating fines if he keeps violating a deal with the SEC.

Attorney Cheryl Crumpton urged the fines when a judge at a hearing Thursday asked what she wanted the court to do.

The SEC says Musk violated a settlement by tweeting about Tesla’s vehicle production in February without a lawyer’s approval. His lawyer says Musk didn’t.

Musk watched from the defense table after saying outside court he has great respect for the justice system.

The proceeding came as Tesla’s stock price fell after it said 77,000 cars were built in the first quarter, putting it seemingly behind in a bid to produce 500,000 cars this year.

2 p.m.

Elon Musk and his lawyers were appearing before a federal judge in New York who will decide whether the Tesla CEO should be held in contempt of court for violating an agreement with the U.S. Securities and Exchange Commission.

Musk said Thursday as he entered a courthouse in Manhattan that he has great respect for the justice system and thinks judges in the American system are outstanding.

The judge began hearing arguments at around 2 p.m.

The SEC says Musk violated a settlement with the SEC when he tweeted about Tesla’s vehicle production in February without a lawyer’s approval.

A previous tweet about a possible plan to take the company private led to the original round of problems with the SEC.

As of Wednesday’s close, Tesla shares were down 12.3% so far this year.

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9:40 a.m.

A federal judge will hear oral arguments Thursday about whether Tesla CEO Elon Musk should be held in contempt of court for violating an agreement with the U.S. Securities and Exchange Commission.

The SEC says Musk violated the settlement when he tweeted about Tesla’s vehicle production in February without a lawyer’s approval.

It’s unclear if Musk plans to attend the hearing.

Meanwhile, Tesla’s shares are falling nearly 10% in early trading after the company said it churned out 77,100 vehicles in the first quarter, well behind the pace it must sustain to fulfill Musk’s pledge to manufacture 500,000 cars annually.

Tesla also said it only delivered 63,000 vehicles in the quarter, down 31% from 2018’s fourth quarter.

As of Wednesday’s close, Tesla shares were down 12.3% so far this year.

Categories: California News