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SEC Wants Tesla CEO Elon Musk Held in Contempt for Tweeting

Washington, DC, United States (VoA) – Tesla CEO Elon Musk’s tweeting habits have triggered another legal challenge from stock market regulators worried about him using his Twitter account to mislead investors.

The latest dust-up emerged late Monday when the Securities and Exchange Commission asked a federal court in New York to hold Musk in contempt for violating a $40 million settlement he begrudgingly reached with the U.S. stock market’s chief regulatory agency five months ago.

Allegations that Musk broke the agreement by tweeting without company approval could renew a debate about whether he has become too reckless to continue as Tesla’s CEO. That cloud has been hanging over Tesla, even though many analysts still consider Musk’s vision to be an indispensable part of the electric car maker he co-founded in 2003.

Tesla’s stock dropped about 4 percent in after-hours trading Monday, reflecting investors’ anxiety about the latest twist in the drama surrounding Musk.

Contempt charges are typically brought against individuals who defy a court order. The SEC settlement was approved by a judge last fall, exposing Musk to potential fines or even jail time if he is found to be in contempt.

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