Monday, 25 March 2019
Latest news
Main » Elon Musk's defense of his Tesla tweet will get SEC response

Elon Musk's defense of his Tesla tweet will get SEC response

15 March 2019

"Model Y unveil event on March 14 at LA Design Studio", Musk announced on Twitter last week.

According to a series of tweets from Musk himself, the Model Y will be an SUV "about 10% bigger than Model 3".

Teaser images suggest a slightly more sophisticated external design than that of the Model X, which is perhaps a little cumbersome, but a more upright stature than the entry-level Model 3.

The US Securities and Exchange Commission had asked the court to hold Musk in contempt, saying his February 19 tweet violated a September fraud settlement barring him from sharing material information about Tesla on social media without the company's pre-approval.

Elon Musk has staked out a First Amendment defense of his tweet that the US Securities and Exchange Commission (SEC) has claimed violates the Tesla CEO's settlement with the federal regulator.

Musk also said the Model Y "baby SUV" will use the same battery as the Model 3 but get less range because of its increased weight and size. Details concerning the new vehicle are scarce, but Musk says the SUV will be bigger than the company's latest Model 3 sedan.

Arsenal's 2-goal Aubameyang explains mask mystery
Arsenal's two goal Pierre-Emerick Aubameyang produced his spider mask during their Europa League triumph over Rennes . Arsenal are through to the next round of the Europa League after mounting a mighty comeback against Rennes .

Tesla also very recently unveiled a new supercharger architecture meant to drastically improve charging speeds. Expectation on the new model is high as SUVs are now the fastest-growing vehicle segment in the US and China, Tesla's two largest markets.

Can the Model Y live up to the hype?

For a few months possibly a meaningful saving will not happen for Tesla when it starts making the Model 3 vehicle in volume. What you won't see for a while, however, is the Model Y, because...

Tesla has backed off a plan to close all its United States stores and said it will instead raise prices of its higher-end vehicles by about 3 percent on average.

The decision to close down all of its retail stores and move to an online-only sales model surprised numerous company's employees and investors, with some investors dumping the company's shares as its "growth" aura was rapidly deflating. In a shareholder's letter from Q4 of 2018, Musk says the company would be gearing up for Model Y production and would reach volume production "by the end of 2020, most likely at Gigafactory 1". Pro-Tesla blog electrek called the business model changes a "chaotic situation", saying it was "either turning into what feels like an extremely poorly managed, haphazard transition or it is intentionally made that way to push out employees like some are suspecting".

Musk's lawyers say that the correction tweet was unnecessary, since the original tweet on February 19th didn't violate his settlement.

Elon Musk's defense of his Tesla tweet will get SEC response