Elon Musk’s legal team responded late Monday, just before a deadline, to the Securities and Exchange Commission’s request to hold him in contempt of court over a tweet he made about Tesla’s production rate.
In the filing submitted to a federal court in Manhattan, Musk’s lawyers say the tweet, posted last month, did not violate the terms of an agreement Musk made with the SEC.
“The Securities and Exchange Commission’s request that Musk be held in civil contempt for a single, immaterial tweet that dutifully complied with the Order and with Tesla’s ‘Senior Executives Communications Policy’ is incorrect on the facts and on the law,” the filing read.
The policy refers to a court order that requires Musk to comply with Tesla’s pre-approval policy for communications that might contain material information.
The tweet in question was posted by Musk on February 20 and said Tesla would make about 500,000 cars this year.
Musk followed it with a second tweet in the same thread that clarified Tesla’s annualized production rate at the end of 2019 would be around 500,000, or 10,000 cars a week, but deliveries were estimated to be about 400,000.