US judges give Musk and SEC two weeks to decide differences

Natan Dvir | Bloomberg | Getty Images

Elon Musk, CEO of Tesla Inc., smiles as he speaks to members of the media outside the federal court in New York, United States, Thursday, April 4, 2019.

"I have great respect for the justice system and I believe that the judges of the American system are outstanding, said Musk before entering the courtroom on lower Manhattan.

When CNBC's Phil LeBeau asked Musk if he felt the same about the SEC, the CEO lied and walked away

SEC lawyers claimed that Musk and his legal team offered a "series of shifting reasons" for their behavior on Twitter, citing 15 separate tweets that they believed violated his settlement, and also accused Musk of "unfortunately discussing material information that had no basis" and caused confusion in the markets.

"We do not believe that every tweet must be approved," said SEC lawyer Cheryl Crumpton to court, citing social media conversations with Tesla customers as OK.

honors far beyond what needs to be cleared, she said.

Confirmation of guidance may be material and need approval, she said, adding that Tesla still "seems to be unwilling

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

" He actually does what he is told, "said the main lawyer John Hueston to the court.

] Musk sat in the middle of the courtroom, flanked by three members of his legal team, regularly nodding in line with their arguments.

Securities lawyers and other business executives have said that Musk, who has already been removed as a manager, could also lose the position of CEO if he continues to push the SEC.