Why Executives Should Respect the SEC, According to Jim Cramer

The SEC is asking a federal court to hold Tesla CEO Elon Musk in contempt after he tweeted about Tesla's production schedule. Jim Cramer believes that executives should respect the SEC.
Author:
Publish date:

The Securities and Exchanges Commission asked a Federal court Monday evening to hold Elon Musk, CEO of Tesla (TSLA) - Get Report , in contempt for violating his agreement with the Commission on his use of social media.

Related. Elon Musk's Hubris Creates a Tesla Buying Opportunity

The SEC said Musk's Tweet from earlier this month, in which he appeared to reveal material information on Tesla's production schedule, violated a September 2018 settlement that prohibited Musk from sharing company information without vetting from legal counsel. The settlement itself, reached through U.S. District Judge Alison Nathan, was linked to an August 2018 Tweet by Musk over plans to take the clean-energy carmaker private that the SEC said was misleading to investors.

Of course, Musk then took to Twitter to say that "something is broken with SEC oversight."

Jim Cramer said that he believes that the SEC should be respected by executives. 

Watch Jim Cramer's Daily NYSE Show and Replays Below