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Elon Musk Tweets Out Another Tesla Forecast in Midst of SEC Talks

16 April 2019
Elon Musk Tweets Out Another Tesla Forecast in Midst of SEC Talks

Tesla agreed to pay a $20 million fine and Mr Musk stepped down as Tesla Chairman for at least three years.

A federal judge in NY has ordered Tesla CEO Elon Musk and USA securities regulators to meet for at least an hour to try and settle a dispute over Musk's tweets.

The latest forecast, given as a seemingly innocuous aside in a discussion about the future value of Tesla vehicles, nonetheless came as Musk's lawyers are negotiating with the SEC over an agreement that put controls on the billionaire's tweeting.

U.S. District Judge Alison Nathan reasoned a contempt-of-court hearing Thursday by telling both sides to meet in the subsequent two weeks.

Shares of Tesla are flat in premarket action at $267.35. If they can't, she'll rule whether Musk is in contempt.

"Pana cell lines at Giga are only at ~24GWh/yr & have been a constraint on Model 3 output since July", Musk wrote in a tweet April 13.

Tesla stated it only delivered 63,000 vehicles in the quarter, down 31% from the fourth quarter of 2018. The stock is down 21 percent this year.

Musk had until Monday to explain why he shouldn't be held him in contempt of court over a tweet on February 19, published outside trading hours, which the SEC said violated a September settlement agreement with the unpredictable CEO. The agency contends that Musk hasn't sought the lawyer's approval for a single tweet.

If Musk plans to attend the hearing, it is unclear.

The judge was not impressed, however, and told both sides to "Take a deep breath, put your reasonableness trousers on, and work this out", giving them until this Thursday to settle their differences out of court.

The problem over Musk's tweets goes back to a settlement reached following Musk tweeted that he had secured the funds to take Tesla personal at $420 an share - a significant premium over the price at the period - when he did not.

The comments about Musk's tweeting and tendency to say things that get him into trouble are reminiscent of an interview James Anderson, a partner at Baillie Gifford & Co., gave to Bloomberg Television last month.

Tesla recently made Autopilot a standard across its vehicles.