The Securities and Exchange Commission wants to subject Tesla CEO Elon Musk to escalating fines to muzzle him by showing information about his firm an SEC lawyer told a judge.

The lawyer, Cheryl Crumpton, spoke about proper punishment after advocating U.S. District Judge Alison J. Nathan to find Musk in contempt for violating a deal with the SEC that needs him to clear any tweets which could disclose significant company information with attorneys first.

The judge ordered both sides to try and negotiate a resolution as she voiced reluctance to rule unless she needs to.

Nathan said agreements that were court-supervised have to be obeyed.

“I don’t care if you are a small potato or a huge fish,” Nathan explained.

Musk sat at a Manhattan court table along with his lawyers as Crumpton told the judge to shoot the primary executive’s”riches into account” because she enforced fines.

Crumpton said Musk had once claimed that was worthwhile.

She explained Nathan should impose penalties”to ensure it is not worth it.”

Attorney John Hueston told the judge the SEC had failed to show the offer had been violated by Musk, after Crumpton claimed. He said that his client was”somebody trying his best to honor.”

“He really does what he is told,” Hueston said.

The issue over Musk’s tweets stems out of a settlement reached following Musk tweeted that he had secured the funds to take Tesla private at $420 an share — a premium over the cost at that time — he didn’t. This tweet sent the inventory of the company . The SEC says investors that purchased Tesla inventory following the tweet are hurt by it but until they had details that is accurate.

Regulators concluded he had not lined up the money to pull off the offer, although musk backed off the notion of taking the company private.

The SEC says as he tweeted without the approval of a lawyer about Tesla’s automobile production Musk violated the settlement in February.

Musk’s 13-word Chat on Feb. 19 said Tesla would create about 500,000 vehicles this year. But the tweet wasn’t accepted by Tesla’s”disclosure counsel,” and the SEC’s contempt-of-court movement filed that month said Musk had not sought a lawyer’s approval for a single tweet.

Musk said because it wasn’t new information that would be meaningful to 23, pre-approval wasn’t needed by his tweet about car production. His attorneys said the SEC violated his First Amendment rights to free speech.

Hueston said additional restricting Musk’s capacity to communicate about his company and imposing fines would”freeze his skill” to operate as an effective entrepreneur.

To support his arguments, Hueston mentioned an earlier exchange between the judge and his adversary where Nathan stated she was”amazed” that the SEC abandoned it around Musk in so many cases whether to run by his lawyers what he intended to put out publicly.

“Does he need preapproval?” The judge requested Crumpton .

“We’re not saying’yes’ or’no,'” she responded.

Though Hueston pounced on the exchange to his benefit, the judge responded by inquiring if the wording of the bargain mattered when she concluded Musk had revealed material truth about his firm.

The judge challenged somewhat rhetorically if there was anything Musk may be held for if Hueston argued that the SEC had enforced rules too tough to decode.

As he arrived at the courthouse in Lower Manhattan, Musk said he has”great respect for the justice system.”

The SEC says its arrangement doesn’t confine Musk’s freedom of speech because as long as his statements are not untrue or misleading, they would be approved.

Meanwhile, Tesla’s stocks fell 8 percent Thursday after the company stated it churns out 77,100 vehicles at the first quarter, well below the speed it has to maintain to fulfill Musk’s assurance to fabricate 500,000 automobiles.

Tesla also stated 63,000 vehicles were simply delivered by it at the quarter, down 31 percent from the fourth quarter of 2018.

The SEC sought to oust Musk from his function as CEO and chairman within his August tweet. Instead, Musk and Tesla consented to pay $40 million and made other concessions to settle the situation. Musk agreed to resign as chairman for three decades and remain in his role as CEO. Before he tweets he also agreed to seek consent from a company attorney.

Musk behavior has led some to question whether he ought to stay CEO of Tesla, while some say he’s too valuable and the visionary behind the business to lose. Musk berated stock exchange analysts for asking questions about Tesla’s financing and prompted a defamation lawsuit when he called a diver who helped rescue 12 boys to a Thai football team out of a muddy cave a pedophile.

As of Thursday’s close, Tesla shares were down 19.5% so far this season.