DETROIT: US securities regulators countered Tesla CEO Elon Musk’s contempt-of-court defense Monday night, writing in court papers that he brazenly disregarded a federal judge’s order and that one of his arguments “borders on the ridiculous.”
Lawyers for the Securities and Exchange Commission, in a response to Musk, wrote that when the contempt motion was filed in February, Musk had not had a single tweet approved by a company lawyer, violating a requirement of a court-approved settlement order.
The October securities fraud settlement stemmed from tweets by Musk in August about having the money to take Tesla private at $420 per share. But Musk didn’t have the funding secured. Tesla and Musk each had to pay $20 million in fines and agree to governance changes that included Musk’s removal as chairman.
SEC lawyers led by Cheryl Crumpton wrote in a response to Musk’s defense that he interprets the settlement order as not requiring pre-approval unless Musk decides the tweets are meaningful to investors. The agency said Musk’s argument that tweeting about car production forecasts on Feb. 19 wasn’t material information is nearly ridiculous. “His interpretation is inconsistent with the plain terms of this court’s order and renders its pre-approval requirement meaningless,” the lawyers wrote.
US District Judge Alison Nathan in Manhattan will decide if Musk is in contempt and whether he should be punished. The SEC said no hearing is necessary on the matter “because there appear to be no disputed issues of material fact.”
Musk’s lawyers wrote last week that the Feb. 19 tweet merely restated previously approved disclosures on electric car production volumes. They wrote that the tweet, which was published after the markets closed, neither revealed material information, nor altered the mix of data available to investors.
The lawyers also accused the Securities and Exchange Commission of censorship and of violating Musk’s First Amendment rights by imposing a prior restraint on his speech.
But the SEC lawyers wrote that submitting statements for approval does not mean Musk is prohibited from speaking. “As long as a statement submitted for pre-approval is not false or misleading, Tesla would presumably approve its publication without prior restraint on Musk,” they wrote. The SEC also wrote that Musk waived any First Amendment challenge to the order when he agreed to it.
Musk’s lawyers also argued that the SEC’s motion for contempt is an over-reach that exceeds its authority. But the SEC said enforcement of the order is up to the judge, who has broad powers to enforce court orders.
Monday’s filing said the Feb. 19 tweet was different from prior public disclosures by the company. Also, Musk has regularly published tweets with “substantive information” about the company and its business, the SEC contended.
Musk’s 13-word Feb. 19 tweet said that Tesla would produce around 500,000 vehicles this year, but it wasn’t approved by the company’s “disclosure counsel,” the SEC has said.
The lawyer quickly realized it and summoned Musk to the company’s Fremont, California, factory to help write a correction. The company would make vehicles at a rate of 500,000 per year, but it wouldn’t produce a half-million in 2019.
Musk’s response by former Enron prosecutor John C. Hueston of Newport Beach, California, said that the settlement allows Musk “reasonable discretion” to determine if his communications would require the lawyer’s approval. In the case of the Feb. 19 tweet, Musk determined that it did not.
Legal experts say it’s unlikely that Musk will be punished severely, but the commission wants to get on the record that Musk violated the terms, to prepare for any future violations.
The tweet was posted and corrected after US markets had closed, but experts say regulators don’t care much about that because stocks are traded nearly around the clock. Tesla’s stock rose by just $1.10, or less than 1 percent, the next day.
US securities regulator: Musk’s contempt defense ‘borders on the ridiculous’
US securities regulator: Musk’s contempt defense ‘borders on the ridiculous’
- SEC lawyers: Elon Musk had not had a single tweet approved by a company lawyer, violating a requirement of a court-approved settlement order
- ‘His interpretation is inconsistent with the plain terms of this court’s order and renders its pre-approval requirement meaningless’
PIF-backed EV maker Lucid hits 16k 2025 deliveries, sets sights on robotaxi deployment
RIYADH: Electric vehicle manufacturer Lucid Group, majority-owned by Saudi Arabia’s Public Investment Fund, announced a surge in deliveries in 2025 with volumes reaching 15,841 units, a 55 percent increase year-on-year.
According to a statement, the EV maker also provided an optimistic production outlook for 2026, signaling confidence in its operational turnaround and strategic shift toward autonomy.
In September 2023, the group opened its first-ever international car manufacturing facility in the Kingdom. The hub serves as the company’s second Advanced Manufacturing Plant and its first outside of the US.
According to the earnings report, the company delivered 5,345 vehicles in the fourth quarter of 2025, up 72 percent from the same period in the previous year, marking its eighth consecutive quarter of record deliveries.
Interim CEO Marc Winterhoff said that 2025 “was all about execution and strategy adjustment to set Lucid up for long-term success. Against a challenging macro backdrop, we nearly doubled production, gained market share, reduced unit costs, and strengthened our financial position.”
This commercial momentum translated directly into financial gains. Lucid’s fourth-quarter revenue soared 123 percent to $522.7 million, while full-year 2025 earnings climbed 68 percent to $1.35 billion. The company ended the quarter with a robust liquidity position of approximately $4.6 billion.
A key driver of the improved performance was the ramp-up of production, including the launch of the Lucid Gravity SUV. Despite facing supply chain and tariff headwinds, Lucid nearly doubled its total production for the year.
The company clarified its final production figures for 2025, reporting a total of 17,840 vehicles. This aligns with its previous guidance of approximately 18,000 units.
Lucid explained that a preliminary estimate of 18,378 units, announced in early January, was revised after 538 vehicles were found not to have completed the final internal validation procedures required to be classified as “produced.”
These vehicles are expected to be finalized in 2026, and the company stressed the revision does not impact previously reported financial results.
The manufacturer expects to produce between 25,000 and 27,000 vehicles in 2026, representing growth of up to 51 percent compared with 2025.
Chief Financial Officer Taoufiq Boussaid said: “Q4 marked a clear step-change in production and unit economics. The progress we made is structural, creating a more repeatable and stable operating cadence heading into 2026.”
Beyond the production numbers, Lucid outlined a pivot toward software and autonomy. Winterhoff highlighted the company’s ambition to become an “early mover in the emerging robotaxi market” by leveraging its industry-leading EV technology and strategic partnerships.
To fund these future growth platforms while maintaining financial discipline, the company is making targeted adjustments to its workforce.
“As we prepare for the next stage of our product and volume expansion, we are making targeted adjustments to our US-based, non-manufacturing workforce to reallocate resources to support the next stage of our growth and margin progression,” Boussaid added.
He reiterated the company’s commitment to “financial rigor, operational efficiency, and thoughtful capital allocation.”
In January 2025, the EV maker became the first global automotive company to join the Kingdom’s “Made in Saudi” program, granting it the right to use the “Saudi Made” label on its products, symbolizing the nation’s focus on quality and innovation.
Lucid’s facility, located in King Abdullah Economic City, can currently assemble 5,000 vehicles annually during its first phase. Once fully operational, the complete manufacturing plant, including the assembly line, is expected to produce up to 155,000 electric cars per year.
This comes as the Kingdom is promoting the adoption of electric vehicles as part of its Vision 2030 strategy, which aims to achieve net-zero carbon emissions by 2060.
A critical target of the initiative is for 30 percent of all vehicles in Riyadh to be electric by 2030, contributing to a broader goal of reducing emissions in the capital by 50 percent.
