Published: Sat, October 06, 2018
Business | By Eloise Houston

'Shortseller Enrichment Commission’? Musk mocks SEC over fraud probe

'Shortseller Enrichment Commission’? Musk mocks SEC over fraud probe

A Thursday afternoon tweet (exactly a week after the SEC sued him) sarcastically praised the SEC's name - changing it to "Shortseller Enrichment Commission". The settlement was announced on September 29, two days after Musk was charged.

Musk derided the SEC as the "Shortseller Enrichment Commission" before snidely praising it for "doing incredible work".

The statement by the electric automaker's CEO alludes to "shortsellers", investors who have bet that Tesla shares will fall and who are frequently the subject of Musk's derision.

Tesla shares fell as Elon Musk mocked the U.S. financial markets watchdog on Twitter, describing it as the "Shortseller Enrichment Commission". He's staying on as CEO of Tesla but is stepping down as chairman and paying a $20 million fine.

His tweet came as the NY judge overseeing the settlement declined to immediately approve the deal.

Musk was accused by the SEC of misleading investors.

Securities and Exchange Commision - recently spearheaded a lawsuit against Musk for his tweets about taking Tesla public at $420 a share.

Over the weekend, Musk fired off another tweet that some took as a subtle jab at the regulators seeking to control him.

It was mere days ago that Musk and SEC agreed on a settlement to avoid a potentially lengthy battle over claims of securities fraud.

"I have lost 30 years of my life savings all in $tsla thanks to your tweets please stop", TrendTrader007 wrote.

Musk and the SEC have been given a week to submit a joint letter to explain why the deal should be cleared.

Musk has been vocal about his animus toward short-sellers, especially in the past year as Tesla has struggled to meet the ambitious production goals that the CEO set for its Model 3 vehicle.

Judge Alison Nathan said the court needs to see justification that the settlement is "fair and reasonable".

Tesla declined to comment. It is worth noting Musk had said he expected Tesla would be profitable from the third quarter onward.

Shares in Tesla closed down 4.4%, and fell further in after hours trading following Mr Musk's tweet.

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