Nathan stated court-supervised arrangements must be obeyed.
The comments about Musk's tweeting and tendency to say things that get him into trouble are reminiscent of an interview James Anderson, a partner at Baillie Gifford & Co., gave to Bloomberg Television last month. Musk later had to walk back the claims.
The two sides have been at odds over whether Musk violated a settlement a year ago related to his tweeting about trying to take the company private. Last August, that conversation, delivered the stock of the company on a ride. The SEC states investors who bought Tesla inventory after the tweet are hurt by it but until they had details that is accurate.
Musk backed off the concept of taking the business private, but regulators concluded he hadn't lined up the money to pull off the offer.
The SEC needs Nathan to Musk for violating a settlement requiring his tweets to be approved by a lawyer should they disclose company facts that are significant.
The SEC says Musk intentionally violated the compensation as he tweeted Tesla's automobile production.
Last September, the SEC sued Musk for a separate tweet on August 7 in which he said Tesla had.
Nathan pushed against Crumpton to specify the terms under which Musk ought to find consent before he tweets, also attracted attention to ambiguity surrounding the rules that the SEC sought to enforce.
"Hueston said further restricting Musk's capacity to convey about his organization and imposing penalties would" freeze his talent" to function as a successful entrepreneur.
Attorney John Hueston told the judge the SEC had failed to reveal Musk had offended the deal after Crumpton claimed. "He said that his client" really does what he is told".
Meanwhile, the Tesla's shares are falling almost 10 percent in early trading after the company stated it churns out 77,100 vehicles at the first quarter, as well behind the pace it must sustain to meet Musk's assurance.
As of Wednesday's close, Tesla shares were down 12.3% up to now this season. He agreed to pay $20 million, step down as chairman and seek pre-approval from an in-house securities lawyer before tweeting information material to the electric-car maker. Musk agreed to resign as chairman for 3 decades and stay in his position as CEO. The portfolio manager for Tesla's largest shareholder after Musk said the CEO may better serve the company by being less outspoken.
At Wednesday's close, Tesla shares were down 12.3% so far this year.