Published: Fri, October 05, 2018
Life&Culture | By Ben Goodman

Tesla CEO Elon Musk mocks SEC as 'Short-Seller Enrichment Commission'

Tesla CEO Elon Musk mocks SEC as 'Short-Seller Enrichment Commission'

Tesla Chief Executive Elon Musk stands on the podium as he attends a forum on startups in Hong Kong, China January 26, 2016.

Musk used his Twitter account to jab the Securities and Exchange Commission, the same agency that went after him for an August 7 tweet in which he declared he had secured financing for a Tesla buyout.

The judge overseeing the case has asked Tesla and the SEC to write a joint memo justifying the settlement.

Musk derided the SEC as the "Shortseller Enrichment Commission" before snidely praising it for "doing incredible work". Under the terms of the settlement, Musk doesn't admit or deny the allegations in the agency's lawsuit against him, but he will step down as the chairman of Tesla's board of directors for three years and pay a $20 million fine. After falling 4.4 percent during the regular trading session, Tesla's stock price fell by another two percent in the minutes after Musk tweeted.

The SEC has so far declined to comment on either of Musk's tweets.

"She may want to know why Tesla is paying a fine because the CEO doesn't know when to shut up", said Adam Pritchard, a University of MI law professor and former SEC lawyer.

The SEC and Tesla did not immediately respond to requests for comment.

Fan hits Yanks' Giancarlo Stanton with his own HR ball
Lynn is 1-1 with a 1.80 ERA in five career starts against Boston, and he is 1-0 with a 1.64 ERA against the Red Sox this season. In addition to the homer being an important personal achievement for Judge, it also helped the Yankees tie a record.

The Wall Street Journal reported today that Mark Cuban spoke to Musk and advised him "that a settlement wouldn't be as damaging as a court fight with the agency".

Tesla also accepted a $20m fine, despite not being charged with fraud.

"Elon appears to be resistant to signing this agreement" said Gene Munster, a managing partner at venture capital firm Loup Ventures.

But in 2014, the 2nd U.S. Circuit Court of Appeals overturned Rakoff's rejection of a $285 million settlement between the SEC and Citigroup Inc, saying he should have given "significant deference" to the regulator.

Mr Musk's tweet, however, could give a judge reason to believe he will not change his behaviour.

The settlement also required Tesla's board to implement procedures for reviewing Musk's communications with investors, which include tweets.

But Musk and Tesla might not even be out of the woods yet.

Like this: