Tesla CEO Elon Musk drops Harambe rap song

Adjust Comment Print

Eventually, Tesla CEO Elon Musk himself stepped in, tweeting the pop star helpful instructions which solved the issue and got her back on the day's winding roads.

The hearing appeared to lift an overhang over Tesla, as the SEC stopped well short of recommending Musk's removal as chief executive or even from the electric vehicle company's board. Analysts had predicted Tesla would come closer to replicating third-quarter results, but the quarterly delivery figure fell short of even their tempered expectations.

The saga of Elon Musk versus the Securities and Exchange Commission has been going on for what seems like years.

When asked what punishments Musk should face, the SEC's lawyer said the agency would like to hit Musk with larger fines but did not ask for Musk to lose his job as Tesla's CEO. She said court-supervised deals must be obeyed, though.

On Wednesday night, Tesla repeated its January 30 vehicle delivery forecast, but said first-quarter deliveries had fallen 31 percent from the prior three months to about 63,000.

Only half of the entire quarter's vehicles were delivered 10 days before the period ended, according to Tesla.

Musk has vehemently denied his February tweet violated the settlement and is fighting the SEC's attempt to have him held in contempt of court.

But at the end of the hearing, Nathan ordered both sides to seek a resolution over the next two weeks.

The legal battle has not stopped Musk from being an outspoken critic of the SEC.

This quarter-to-quarter drop in sales at Tesla breaks an nearly two year growth streak and threatens Tesla's growth narrative, valuation and its ability to service its debt.

Tesla reiterated its forecast of 360,000 to 400,000 vehicle deliveries in 2019, which Munster called a "silver lining" that may show buyers are still clamouring for the cars.

In July, Musk used Twitter to accuse a British diver involved in the rescue of a youth football team from a Thai cave system of being a paedophile after the diver criticised a mini-submarine Musk had offered to help with the rescue.