Tesla shares sink as auto deliveries drop

Muriel Colon
April 5, 2019

Speaking in a packed courtroom, Crumpton said that if Musk were held in contempt, the SEC might ask Nathan to require him to make regular reports to the regulator, including whether Tesla lawyers were vetting his statements and if not why.

The "funding secured" tweet had sent Tesla's share price up as much as 13.3 percent.

Elon Musk has not forgotten about Harambe.

In response, Musk said the SEC "forgot to read Tesla earnings transcript" - referring to the company's fourth-quarter earnings call - in which he told investors that Model 3 output would reach 500,000 "sometime between Q4 of 2019 and Q2 of 2020".

While Musk warned the company probably would lose money last quarter and the carmaker has a US$566 million note coming due in November, Tesla has said it has enough money to pay off debt obligations with cash flow.

These are the tweets the SEC says are in violation of Musk's agreement not to tweet about materials which could impact Tesla shareholders without permission.

Tesla shares fell almost nine per cent in early USA trading this afternoon, after the electric auto giant said its deliveries have suffered a record 31 per cent quarterly drop. The SEC also asked the judge to force Musk to check in regularly with the SEC to prove his compliance with the terms of his deal with the agency.

The billionaire tech entrepreneur could be seen pacing in the security line at the downtown Manhattan federal courthouse ahead of a 2 p.m. contempt of court hearing before Judge Alison Nathan.

Tesla on Wednesday released total vehicle-production and delivery numbers for the first quarter of 2019, which ended on Sunday.

That is also inaccurate and Musk proceeded to correct that the company would deliver 400,00 models but that annualised production would be around 500,000. Last year, Musk berated stock market analysts for asking questions about Tesla's finances and prompted a defamation lawsuit when he called a diver who helped rescue 12 boys on a Thai soccer team from a flooded cave a pedophile.

There's maybe only one thing that makes being ruled over by a technocracy of uber-rich venture capitalist goons somewhat tolerable, and that's the fact that most of said goons appear to have late-stage brain worms.

Other reports by

Discuss This Article