The Securities and Exchange Commission argued the tweet was misleading and harmed investors who bought stock in the electric vehicle company as a result.
Tesla shares rose as much as 5.5 percent to $273.88 before easing to $271.63 in early-afternoon trade on Nasdaq.
Despite a $20 million settlement with the Securities and Exchange Commission that includes a provision for more company oversight of his social media use, the billionaire has been making waves on Twitter once again. Musk also issued the same pledge to all countries that Tesla will be operating in by the end of next year.
Under the terms of the deal, Musk has to pay a $20 million fine and step down as Tesla chairman within 45 days for a period of at least three years.
Judge Alison Nathan of the U.S. District Court for the Southern District of NY approved a motion filed by the U.S. Securities and Exchange Commission outlining the agreement with Tesla and Musk.
"Just want to [say] that the Shortseller Enrichment Commission is doing incredible work".
The lawsuit, which cites e-Mails and text messages between Mr. Musk and Tesla executives, quoted him as saying he thought his girlfriend, performance artist "Grimes" "would find it amusing, which admittedly is not a great reason to pick a price".
The Model 3 is part of Musk's broader plan to build a clean energy and transportation company that offers electric semi-trailer trucks, rooftop solar energy systems and large-scale battery storage systems. Nevertheless, less than 40 minutes after his tweet about Your Name, Musk tweeted the message "It is time to create a mecha". Customers who want the standard range battery can order a higher-priced version of the auto or wait for the lower priced version to become available.