Connect with us

Tech News

SEC pushes court to hold Elon Musk in contempt over Tesla tweets – TechCrunch

Published

on

Tesla CEO Elon Musk is in blatant violation of a settlement agreement reached last year over securities fraud allegations, the U.S. Securities and Exchange Commission said in a biting response to the court that argued the billionaire entrepreneur be held in contempt.

The response, which was filed late Monday, is the latest salvo in the agency’s fight with Musk that was sparked by the now infamous “funding secured” tweet. The SEC filed a complaint in federal district court in September alleging that Musk lied when he tweeted on August 7 that he had “funding secured” for a private takeover of the company at $420 per share.

Musk and Tesla settled with the SEC without admitting wrongdoing. Tesla agreed to pay a $20 million fine; Musk had to agree to step down as Tesla chairman for a period of at least three years; the company had to appoint two independent directors to the board; and Tesla was also told to put in place a way to monitor Musk’s statements to the public about the company, including via Twitter.

It’s that final point about Musk’s use of Twitter that has raised the SEC’s hackles. Last month, the SEC asked a judge to hold Musk in contempt for violating the settlement agreement. The SEC argued that a tweet sent by Musk on February 19 violated their agreement. Musk is supposed to get approval from Tesla’s board before communicating potentially material information to investors.

Musk tweeted Feb. 19 that Tesla would produce “around” 500,000 cars this year, correcting himself hours later to clarify that he meant the company would be producing at an annualized rate of 500,000 vehicles by year end.

The next morning, Tesla announced that its general counsel, Dane Butswinkas, was leaving after just months on the job. Butswinkas said in a statement that he was “grateful for the opportunity” to work with Musk and Tesla and that he plans to return to the Washington, D.C. law firm for which he previously worked 30 years.

The SEC said in this latest response that it was stunned to discover that Musk had not sought pre-approval for a single one his tweets about Tesla.

The Court-ordered pre-approval requirement for Musk’s written communications lies at the heart of the settlement. Musk’s unchecked and misleading tweets about Tesla are what precipitated the SEC’s charges, and the pre-approval requirement was designed to protect against reckless conduct by Musk going forward.

It is therefore stunning to learn that, at the time of filing of the instant motion, Musk had not sought pre-approval for a single one of the numerous tweets about Tesla he published in the months since the Court-ordered pre-approval policy went into effect.

Many of these tweets were about the topics specifically identified by Tesla in its own policies as potentially material to shareholders. Musk reads this Court’s order as not requiring pre-approval unless Musk himself unilaterally decides his planned tweets are material. His interpretation is inconsistent with the plain terms of this Court’s order and renders its pre- approval requirement meaningless.

Musk has argued that the Feb 19 tweet was “immaterial” and complied with the settlement. He also said the SEC’s effort to find him in contempt infringed on the First Amendment and his right to free speech. The SEC has rejected that argument. “Submitting his written statements for pre-approval does not, as Musk baldly asserts, mean that he is prohibited from speaking,” the SEC wrote in its reply to Musk’s order to show cause. 

The SEC told a judge Monday that Musk has regularly published substantive information about Tesla and its business in tweets, beyond the February 19 instance. The SEC pointed to tweets about Tesla vehicle tax credits and pricing, vehicle maintenance costs, plans for expansion of charging stations internationally, the EPA rating of Tesla vehicles, construction and production plans for a new Shanghai factory, and the results of government safety testing of Tesla vehicles as evidence of Musk’s non compliance.

You can read the entire filing here.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Tech News

The Real Reason Betamax Lost The Format Wars

Published

on

JVC officially announced the VHS-format VCR in 1976 and with two formats on the market, both sides dug in (via Sony). Mitsubishi Electric, Matsushita, Hitachi, Sharp, and Akai Electric went with JVC’s VHS format, while Toshiba, Sanyo Electric, NEC, Aiwa, and Pioneer sided with Sony’s Beta format. Sony visited Matsushita’s Osaka headquarters at the end of 1976 to try and persuade them to adopt Betamax. Sony placed one of its players next to a JVC player with both lids off, and Matsushita went with JVC’s player because they had fewer components and could be made for less money.

It wasn’t just the recording media themselves that were better; Sony’s videotape players and recorders were better because they manufactured most of them themselves. And if Sony didn’t build them, it was done by manufacturers they closely monitored, so quality was never an issue. But according to Grunge, JVC wanted to do things differently and licensed its VHS technology to any manufacturer that wanted to make its VCRs. Sony wouldn’t allow its players to be made without direct oversight. This decision ultimately helped lead to the demise of the Beta format as it fostered competition between the various companies making the VHS players and, in turn, eventually drove the prices down to a level far more affordable choice than Sony’s high-priced machines.

Continue Reading

Tech News

How To Fix Your OnePlus When It’s Charging Slowly

Published

on

First, examine your phone’s USB port under a bright light from different angles. Unless you scrub the port every few months, you’ll find dirt and grime lodged into its crevices. Moisture can also harden the build-up, making it difficult to scrape off. But with the right tools and a bit of elbow grease, you can wipe all the dust and debris from your OnePlus charging port.

You’ll need a flashlight or lamp, a toothpick or a cotton bud, and a compressed air duster or bulb syringe. Experts recommend using wooden toothpicks or cotton swabs because they’re non-conductive and don’t interfere with the circuitry. Sharp metal implements like thumbtacks and safety pins can scratch and damage the fragile USB port (via Asurion). Also, avoid blowing air on the phone because your breath contains moisture, making the cleaning even trickier.

To get started, turn off your OnePlus. And use the compressed air duster or bulb syringe to clear out any loose dust and dirt. Next, gently and carefully scrape the build-up with the toothpick or cotton bud. Use a flashlight or lamp to reach the tight corners. You can also tilt the phone or give it slight taps to clear out the scrapings. Finish off with a few more bursts of compressed air. Turn your phone on and test if the slow charging is fixed.

Continue Reading

Tech News

The 10 Best Aftermarket Parts For Your Ford Bronco

Published

on

For those unfamiliar with the tools of the great outdoors, a winch is a device that employs a spool, a length of cable, usually steel braided, and a hook of some kind to aid in several tasks. The most common use of a winch on a 4X4 is to help it get out of a stuck situation. Should your Bronco get mired in mud or fail to overcome a big rock, letting out the winch cable and hooking it onto something solid, like a stout tree, enables the winch to pull it to freedom.

Winches come with various levels of power and cable types and can be installed in various locations. For the purposes of an offroad Bronco, the front bumper is ideal. Not only can it get itself out of a sticky situation, but you can also help a friend by pulling them to safety. Winches can also be set to task as tools. In an emergency, for example, a winch can help to remove a fallen limb somewhere or to drag a heavy object from a body of water.

The Drive notes that winches can be electric, which is handy as the Bronco comes with auxiliary switches for accessories, or hydraulic, running off a power steering pump. Cost ranges from around $350 to $900 and some of the most popular brands are Warn and Superwinch.

Continue Reading

Trending