Elon Musk’s defense of his Tesla tweet will get SEC response


FILE PHOTO: SpaceX founder Elon Musk looks on at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, U.S., March 2, 2019. This comes days after the company reversed course on its decision to close most of its retail stores.

As part of Tesla's move to base the Model Y on the Model 3, the two vehicles will apparently share some 75 per cent of their components. No other reproduction or distribution is permitted without prior written consent.

Elon Musk has staked out a First Amendment defense of his tweet that the US Securities and Exchange Commission (SEC) has claimed violates the Tesla CEO's settlement with the federal regulator.

Moreover, Musk has exhibited self-censorship in dramatically reducing the volume of tweets since the settlement, they wrote, adding that the SEC's request, if granted, would raise free speech issues.

A U.S. District Judge Tuesday granted the Securities and Exchange Commission permission to respond to Tesla's CEO Elon Musk's claim that his February tweet on the electric auto maker's production plans was not in violation of his fraud settlement. Tesla declined to comment on the report.

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On Monday, Musk argued in a filing that his "single, immaterial" tweet to his more than 24 million Twitter followers claiming the electric vehicle-maker would produce around 500,000 cars in 2019 did not violate that agreement.

Musk also said the Model Y "baby SUV" will use the same battery as the Model 3 but get less range because of its increased weight and size.

Daniel Sparks owns shares of Tesla.

Since last week the company has started accepting orders for the Model 3 that costs $35,000. From what we can tell, much of the front fascia will resemble the Model 3, while the overall shape will echo that of the Model X, albeit on a smaller scale.

Tesla currently owes lease obligations of $1.6 billion, with $1.1 billion due between now and 2023 the Wall Street Journal reported last week. Pro-Tesla blog electrek called the business model changes a "chaotic situation", saying it was "either turning into what feels like an extremely poorly managed, haphazard transition or it is intentionally made that way to push out employees like some are suspecting". Tesla stated that the people holding the reservation will possibly be getting the vehicle in near 4 weeks.