Judge Gives Tesla and SEC Two Weeks to Resolve Their Issues

Federal judge Alison Nathan has given Tesla and the Securities and Exchange Commission 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 both to “take a deep breath, put on your reasonableness pants” and work out a solution.
Musk was “happy” with what the judge said on Thursday and 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 before he entered the court room.

“We don’t think every tweet needs to be approved,” SEC attorney Cheryl Crumpton told the court.”

She said 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.”

Disclaimer: We have no position Tesla Inc. (NASDAQ: TSLA) have not been compensated for this article.