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Elon Musk said he'll probably reach a new settlement with the SEC in the next 2 weeks

Apr 5, 2019, 02:43 IST

Brendan McDermid/Reuters

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Tesla CEO Elon Musk said he will probably settle with the Securities and Exchange Commission (SEC) over its motion to have him held in contempt of court following a February tweet about vehicle production.

Bloomberg reporter Bob Van Voris tweeted a video of Musk on Thursday after the court hearing in New York City. When asked if he would reach a new agreement with the SEC in the next two weeks, Musk said, "most likely."

During the hearing, a federal judge ruled that Musk and the SEC must take the next two weeks to reach a new resolution over their 2018 settlement regarding Musk's conduct on Twitter.

Read more: Judge orders Elon Musk and the SEC to put on their 'reasonableness pants' and work things out

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In February, the SEC asked a judge to hold Musk in contempt of the court that approved their 2018 settlement after Musk tweeted out a projection about Tesla vehicle production. The SEC said in a court filing that Musk violated the terms of their settlement by not receiving approval from Tesla before publishing the tweet.

The settlement followed an August 2018 tweet from Musk saying he had obtained the funding necessary to take Tesla private at $420 per share. The SEC sued Musk over that tweet, saying that Musk was not as close to acquiring funding for the deal as he indicated. Their settlement required Musk to step down as the chairman of Tesla's board of directors for three years, pay a $20 million fine, and receive approval for all future written communications that could be relevant to Tesla shareholders.

Got a Tesla tip? Contact this reporter at mmatousek@businessinsider.com.

Get the latest Tesla stock price here.

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