The Securities and Exchange Commission has asked a judge to find Tesla Inc. (TSLA) - Get Report CEO Elon Musk violated the terms of his settlement with the agency with a recent tweet, according to a published report Monday.
The agency is asking that a federal judge hold Musk in contempt for failing to get pre-approval for tweets and other posts on social media, Bloomberg reported.
Musk tweeted and then revised a tweet about Tesla's production projections on Feb. 19.
Under the terms of a securities fraud settlement with the SEC last October, Musk was required to step down as chairman of Tesla and to pay a $20 million fine stemming from a "going private" tweet that falsely claimed he had financing to take Tesla private at $420 a share.
The company was also forced to pay a $20 million fine, to appoint additional independent directors and to "put in place additional controls and procedures to oversee Musk's communications," the SEC said at the time.
Tesla shares fell 5% to $284 in after hours trading following the report.
A report in the online edition of The Wall Street Journal said that later on Monday evening, Musk pointed out on Twitter that his comments on the company's Jan. 30 quarterly call suggested Model 3 deliveries could range between 350,00 and 500,000 this year.
But on Monday night, that statement was no longer appearing on Musk's Twitter account.