Elon Musk mocks SEC just days after Tesla settlement

Elon Musk mocks SEC just days after Tesla settlement

Elon Musk mocks SEC just days after Tesla settlement

The company also agreed install two new independent directors on its board and establish a committee to oversee Musk's communications.

The sell-off started in morning trading the day after Musk stirred nerves about a settlement of his securities fraud lawsuit by calling the SEC the "Shortseller Enrichment Commission" on Twitter.

In a separate tweet, Musk took another shot at shortsellers and accused BlackRock Inc of enabling them by saying, "The big funds can & will (sic), as they're suffering a net loss".

The tweets come days after Musk agreed to relinquish his Tesla chairmanship for at least three years and pay a $20 million fine.

Reuters couldn't reach out to Murdoch for comment.

A Tesla spokesman said the company had no comment on the tweet.

Tesla's top executive Elon Musk can't keep his fingers off the keyboard. The company also accepted a $20 million fine, despite not being charged with fraud.

Nathan said it was her regular practice to request such letters.

Tesla declined to comment.

Musk has long derided short sellers, who bet against a company's stock, for their thirst for Tesla's stock to decline.

More news: Rupee falls below 74 against dollar as RBI keeps repo rate unchanged

Nathan "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.

Shares of Tesla closed down $12.97, or 4.4 percent, at $281.83, and fell another 2.1 percent to $276 following Musk's tweet after market hours. A federal judge still has to decide whether the penalties levied against the CEO are appropriate.

Exactly. Short-sellers are value destroyers.

Some judges have complained about being viewed as rubber stamps for SEC settlements.

The 2nd Circuit has jurisdiction over Nathan's court, and Pritchard said the Citigroup decision likely foreshadows approval of Musk's settlement.

Separately, the Wall Street Journal said billionaire businessman Mark Cuban talked with Musk for 15 minutes and convinced him to take the deal.

That arrangement is unusual, says Jay Dubow, a partner at Pepper Hamilton and a former branch chief with the SEC's enforcement division. The court expects to receive the joint statement by 11 October, explaining why their settlement should be approved.

"I do not think there is any serious chance of the settlement being rejected, based on 2nd Circuit precedent", Pritchard added. "This is just a hoop to be jumped through", he said.

"The Court has a duty to ensure the proposed consent judgment is fair and reasonable", the judge wrote in the order.

Related news

[an error occurred while processing the directive]