Elon Musk, One, SEC Nothing.
That's the only way to describe the outcome of the contempt case brought by the SEC against Musk. When a federal judge says that the two sides should "put their reasonableness pants on," you have to wonder what kind of pants the SEC is wearing.
To recap, the SEC and Tesla (TSLA) settled on a procedure that would allow Musk to tweet after vetting. The tweets that needed vetting were those involving material information.
The most material information, the information that determines the direction of the stock, is deliveries. We saw that yesterday when weak deliveries caused the stock to drop the second largest amount this year.
That's why the SEC appended research reports to their brief just in case the judge didn't understand that deliveries are material and Musk chose to tweet a figure that no longer seems attainable.
The truth is the SEC has no juice with Musk. Judge Nathan's decision to throw it back to the SEC is like saying "We know you aren't able to rein him in and you are as unreasonable as he is so get it together."
I can't for the life of me figure out how the SEC can enforce its settlement with Musk and Tesla if the judge doesn't think it was reasonable to come to her and say that the agency can't stop him from tweeting. They don't really have any enforcement ability.
It's a huge win for Musk. He's virtually home free.
I am sure the SEC is steamed about this one. But they ran into a real brick wall.
Congratz to Musk.
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