Tesla shares went down by 5 percent during extended trade as US SEC calls for the electric carmaker’s CEO Elon Musk be held by a federal court due to violation of last year’s settlement.
A part of the settlement is any statements made by Musk and posted on social media shall be reviewed and assessed by the company first. Musk recently tweeted: "Tesla made 0 cars in 2011, but will make around 500k in 2019," which is said to be inaccurate and has not been approved prior to posting.
However, Tesla and Musk’s lawyer believed though the tweet itself has not been pre-approved, the idea of the content has been “pre-approved and publicly disseminated” as it was a reiteration of the released company report in January.