Anonymous ID: eb08df Feb. 26, 2019, 10:13 p.m. No.5410601   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun

Tesla's Musk must address SEC contempt bid as he calls agency 'broken'

(has until march 11th to address this)

 

NEW YORK (Reuters) - A federal judge on Tuesday ordered Tesla Inc Chief Executive Elon Musk to explain by March 11 why he should not be held in contempt for violating his fraud settlement with the U.S. Securities and Exchange Commission.

 

The order by U.S. District Judge Alison Nathan in Manhattan came hours after the billionaire criticized SEC oversight as "broken," in the wake of the regulator's request on Monday night that he be held in contempt.

 

Lawyers for Tesla and Musk did not immediately respond to requests for comment. Tesla did not immediately respond to similar requests. The SEC declined to comment.

 

Analysts said the renewal of the public battle between Musk and the top U.S. securities regulator will be an overhang on Tesla's stock, which has lost about one-quarter of its value since peaking in August.

 

"Another boxing match with the SEC is the last thing investors wanted to see," wrote Daniel Ives, an analyst at Wedbush Securities who has an "outperform" rating on Tesla.

 

He called the latest incident "a wild card that could potentially bring this tornado of uncertainty back into the Tesla story until resolved."

 

https://www.marketscreener.com/business-leaders/Elon-Musk-1364/news/Tesla-s-Musk-must-address-SEC-contempt-bid-as-he-calls-agency-brokenโ€“28069409/?countview=0