Elon Musk Fires Back At SEC in New Defense

  • Elon Musk Fires Back At SEC in New Defense

Elon Musk Fires Back At SEC in New Defense

Is a tweet sent out earlier today, Elon Musk has said that Tesla should not have temporarily lowered the price of Autopilot, its semi-autonomous driver-assistance system.

Musk's "single, immaterial" tweet to his more than 24 million Twitter followers claiming the electric vehicle-maker would produce around 500,000 cars in 2019 also complied with company's communication policy for senior executives, a condition of the settlement, lawyers for the Tesla chief wrote in a filing in federal court in Manhattan.

"Model Y unveil event on March 14 at LA Design Studio", Musk announced on Twitter last week. The company expects to build closer to 400,000 cars this year. It's partially backtracking on a plan to move to an online-only sales model, it's dealing with skepticism regarding consumer demand, and its charismatic CEO Elon Musk is, once again, in trouble with regulators over his tweeting habits.

In other words, this will be meaningfully smaller and cheaper than Tesla's current SUV: the Model X. There will be no price increase to the $35,000 Model 3. But Tesla will likely introduce higher-priced versions of the vehicle before it brings to market the base model, just as it did with the Model 3.

Tesla has enormous expectations for its Model Y. Citing the fact that the midsized SUV segment is the most popular vehicle type in numerous major markets Tesla operates in, Musk believes the Model Y will be produced in higher volumes than the Model 3, he said during the company's fourth-quarter earnings call.

Tesla has undergone multiple rounds of layoffs in the past year.

The renewed public battle between Tesla's chief executive and the SEC adds pressure on Musk, the public face of Tesla, who is struggling to make the company profitable after cutting the price of its Model 3 sedan to $35,000.

Tesla recently announced a handful of updates dedicated to increasing charging speeds for all its vehicles, including the reveal of its V3 Supercharger, an updated charging method that Tesla says will "ultimately cut the amount of time customers spend charging by an average of 50%, as modeled on our fleet data".

Tune in to the event on Tesla's website on Thursday to find out details about the new vehicle.

This abrupt pricing reversal follows reports out of China according to which outraged Tesla owners were protesting the lower prices.