Musk has backed U.S. District Judge Alison Nathan of the Southern District of New York “into a corner,” Cramer said on “Squawk on the Street.” “This judge either has to get rid of him or say that the SEC is wrong.”
“But Musk has made a fool of Judge Nathan,” he added.
Tesla shares were lower Tuesday after the SEC doubled down on its allegation that Musk “blatantly violated” a settlement with the agency by discussing the company’s production forecasts on Twitter on Feb. 19. Musk defended the comment by saying he was only discussing information he had previously revealed.
The SEC has filed a request to hold Musk in contempt. Nathan will decide if Musk is in contempt and whether he should be punished, which could include additional fines or bar him from running a public company.
Cramer has been critical of Musk ever since the CEO’s Aug. 7 take-private tweet stunned the financial community and Washington regulators. The Tesla CEO abandoned the take-private idea on Aug. 24.
The SEC had eventually settled charges with Musk. He was forced to relinquish his chairman title, pay a hefty fine and get preapproval for his future tweets.
At the time, Cramer said Musk’s “stunts” were ill-advised, and recommend the board put Musk on medical leave.
On Feb. 26, when Musk lashed out against the SEC again, Cramer said Musk should be removed as CEO of Tesla for his comments.
Musk goes after the SEC “as if it’s funny,” the “Mad Money” host said at the time. ” “If this guy is going to attack the SEC, how about removing him? He attacked the SEC.”
Tesla did not immediately respond to a request for comment.
— CNBC’s Robert Ferris contributed to this report.