Listen: Elon Musk, Tesla And SEC discussed on BTV Simulcast
"Technology Chang in San Francisco. Well, Elon Musk has already been warned about his Twitter us, but that hasn't stopped him. So far must wait another tesla production forecast like the one that got him in trouble in the first place. He wrote that the company will build over half a million cars in the next here. A similar tweet led the SEC to argue. He was in contempt of a settlement reached last year. Joining us to discuss bloomer crack Trudell who covers tesla for us. So craig. What exactly happened at this time? So this is as you pointed out very similar to a post that he sent in February in that post. He said that the company was going to build about five hundred thousand cars this year. Around that time, the House Securities lawyer at tesla who was was sort of name to a position or hired as a result of a settlement with the SEC reached out to to musk and sort of worked with him too quickly. Send out a follow up tweet to sort of clean that first one because it was sort of inconsistent with past statements. There's a little bit of deeper story there where must can fill sort of contradicted a written statement on an earnings call. But in any case, they tried to clean it up the very much took notice and reach out to musk floors. And we found ourselves in this contempt of court fight for for us to send this tweet over the weekend. It was very reminiscent of it. It also just based on context. Clues didn't look like the sort of post that maybe was run by lawyer. It was sort of impassive and made in reply to some some person on Twitter. So it definitely sort of read as though was doing something very similar just sort of casually talking about how many cars, tesla is going to make the SEC has argued that's very much material information and something that he's supposed to get. Cleared with with a lawyer within tesla. So there's no question that Elon Musk likes to fly close to the sun, which is what money investors love about him. But technically if the information is correct is he allowed per this agreement to tweet about it. This is part of why the judge who's overseeing this case told both sides just within the last couple of weeks to put their reasonable this pants on. And that was those were her words to go back and revisit this agreement and sort of come to an agreement of of what is an isn't material. And what this protocols are for musk. Clearly, he he does not like this agreement. He's wanted to change. I think that's sort of come through in the ways in which he and his legal team have sort of reacted to the sort of. Wanting to do battle over this again. And the problem with is it probably isn't a good idea for him to go about sort of taking issue with this agreement by basically doing the same thing that that caused the SEC to get frustrated with him in the first place, the judge in this case set a deadline for this Thursday for for the two parties to come together meet for an hour, at least an hour and hash things out. And if they're not able to come to an agreement the judge will make a ruling on whether or not musk is in contempt and decide sort of what to do from there. Meantime, there are real concerns right about deliveries and Nikkei also reported that the company and Panasonic are freezing plans to extend capacity in the battery factory that they share in Nevada. What do we know about this this? This was a report last week Nikkei, obviously, a very well source publication in Japan came out and said that these two companies were sort of putting expansion at gigafactory on hold as a result of questions about just how much demand there is for electric vehicles sort of the financial of this project. This is one where Panasonic spend a lot of money alongside tesla to build this plan. It's a massive factory out in Nevada. And so it's recent real questions about disorder the relationship there. It's a really important one for for both companies and tesla can sort of ill afford to have this release. Ship fall apart because of just how much they're sort of invested in one another and interestingly while musk was tweeting away this weekend. He sort of hung Panasonic out to dry and said that their battery cell manufacturing lines gigafactory were actually holding up production of model three sedans, which is which is kind of an interesting claim. Also, just sort of is puzzling. Given the drop into liveries that we've seen with tesla. You would think that they're not having a problem with production? Lately. What they're having a problem with this demand. Interesting. We'll be watching to see how all of that unfolds. Bloomberg Craig Trudell. Thank you so much for stopping by. Well, meantime, X CFO Brian goose has auto sales in China are seeing significant decline compared to electric cars. He also talked about tesla in China and how China scrapping its subsidy to the industry could wipe out smaller players something that he's not unhappy about he's Bloomberg's Tom MacKenzie at the Shanghai auto show pick. Listen overall,."