Tesla, Elon Musk and the U.S. Securities and Exchange Commission have two weeks to work out their differences and come to a new resolution, a U.S. judge said Thursday at the conclusion of a hearing held to determine whether the automaker’s CEO should be held in contempt for his Twitter use.
The SEC had asked the court to hold Musk in contempt for violating a settlement agreement reached last October over Musk’s now infamous “funding secured” tweet. Under that agreement, Musk is supposed to get approval from Tesla’s board before communicating potentially material information to investors, the agency has argued. The SEC says a February 19 tweet violated the agreement.
Musk contends he didn’t violate the agreement and that the problem lies in the SEC’s interpretation, which he described as “virtually wrong at every level,” in a recent court filing.
As lawyers from Tesla and the SEC argued their points Thursday, U.S. District Judge Alison Nathan’s questioning suggested little patience with the two parties’ inability to reach a resolution, according to TechCrunch’s review of several reported accounts of inside the courtroom, including from Bloomberg and Courthouse News.