US judge gives Musk and SEC two weeks to settle differences

“I have great respect for the justice system and I think the judges in the American system are outstanding,” Musk said before the before entering the courthouse in lower Manhattan.

When CNBC’s Phil LeBeau asked Musk if he felt the same about the SEC, the CEO laughed and walked away.

SEC lawyers argued that Musk and his legal team offered a “series of shifting justifications” for his behavior on Twitter, citing 15 separate tweets they believe violated his settlement. They also accused Musk of “recklessly tweeting out material information that had no basis in fact” and caused confusion in the markets.

“We don’t think every tweet needs to be approved,” SEC attorney Cheryl Crumpton told the court, citing conversations on social media with Tesla customers as okay.

Statements much beyond that needs to be cleared, she said.

Reaffirming guidance could be material and need approval, she said, adding that Tesla still “appears to be unwilling” to exercise control over Musk.

Musk’s lawyers said the judge’s order was a gateway to a negotiation with the SEC.

“He actually does what he is told,” Musk’s lead attorney John Hueston told the court.

Musk sat in the center of the courtroom, flanked by three members of his legal team, periodically nodding in agreement to their arguments.

Securities lawyers and other industry executives have said that Musk, who has already been removed as chairman, could also lose his post as CEO if he keeps pushing the SEC.