Tesla's CEO Elon Musk is Happy with Federal Judge's Decision Over his Fight with the SEC


 
 
12:33 04/05/2019

Federal judge Alison Nathan wants to let Tesla's TSLA  CEO Elon Musk and the Securities Exchange Commission work their stuff out on their own. The judge has given the two two weeks to resolve their issues.

According to the U.S. judge, everyone must follow the law whether they're a 'small potato' or a 'big fish.' She says she had “serious concerns that no matter what I decide here, this issue won’t be resolved.”

The judge has ordered the two to “take a deep breath, put on your reasonableness pants” and work out a solution.

Musk was 'happy' with what the judge decided. He told reporters that he “most likely would be able to work out an agreement with the SEC over the next two weeks.

 “I have great respect for the justice system and I think the judges in the American system are outstanding,” Musk said prior to entering the court room.

Nathan said the two should use the time to renegotiate and clarify parts of a 2018 settlement agreement that required stricter oversight of Musk's social media use.

“We don’t think every tweet needs to be approved,” SEC attorney Cheryl Crumpton told the court.' She added that Tesla still “appears to be unwilling” to exercise control over Musk but Musk's lead attorney John Hueston has said that Musk 'does what he is told.'

'The court and SEC are in a bit of a bind here because capital punishment, if you will, would be ... throwing him out of company or banning him from running any public company from now on for violating this agreement with the SEC,” said Paul Ingrassia, Revs Institute for Automotive Research editor on 'The Exchange.'

'He is viewed as being the essence of Tesla. It’s his brainchild. He’s not only the public figure but also the creative genius behind it.”

“At some point I think people have to start wondering would this company be better off with a calmer managerial presence in charge as opposed to a genius leader but a mercurial leader,” Ingrassia added. “Is the company now at that stage of its development? But Musk has so much of the shares himself that that’s probably not going to happen without an SEC or court order, which I doubt they’ll be willing to do.”




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