Tesla (NASDAQ:TSLA) CEO, Elon Musk Mocks SEC in Tweet

Tesla (NASDAQ:TSLA) CEO, Elon Musk Mocks SEC in Tweet

Tesla (NASDAQ:TSLA) CEO, Elon Musk Mocks SEC in Tweet


Thursday, Tesla (NASDAQ:TSLA) CEO Elon Musk mocked the US Securities and Exchange Commission (SEC) referencing a settlement deal with the commission.

“The Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!” Mr. Musk said in a Tweet where he was likely referring to investors who bet against the company, aka short sellers.

Mr. Musk’s post came almost a week after he reached a deal with the SEC to settle a lawsuit over Tweets he posted on 7 August when he said he had secured funding to take the his niche EV company private at 420/share, causing the company’s stock to soar. Mr. Musk was accused by the SEC of misleading investors with the ‘420’ Tweet.

Tesla and Mr. Musk agreed to pay $20-M each to the regulator under the settlement, and Mr. Musk to step down as the company’s Chairman but remain CEO as part of the deal.

His Tweet came as the New York judge overseeing the settlement declined to immediately approve the deal.

US District Judge Alison Nathan asked the SEC and Mr. Musk to file a joint letter “explaining why the Court should approve the proposed consent judgment.” The court expects to receive the joint statement by 11 October, explaining why their settlement should be approved.

Judge Alison Nathan said it is the practice at the Southern District of New York Court to ask for a joint statement.

Shares of the company fell 5% to 281.83 in afternoon trading Thursday.

“The Court has a duty to ensure the proposed consent judgment is “fair and reasonable,” Judge Nathan wrote in the order, numbered 18-cv-08865-AJN.

The SEC and Tesla did not immediately respond to request for comment

HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bearish (-0.33) Neutral (-0.07) Bearish (-0.40) Very Bearish (-0.51)

Stay tuned…

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