On Saturday, Elon Musk settled a lawsuit from the Securities and Exchange Commission claiming that he had violated federal securities legal guidelines by tweeting that he had “funding secured” to take Tesla non-public. Now, days later, Musk has tweeted out a sarcastic message to the SEC:
Just need to that the Shortseller Enrichment Commission is doing unbelievable work. And the identify change is so on level!— Elon Musk (@elonmusk) October 4, 2018
Musk has lengthy waged a rhetorical battle towards shortsellers—buyers who borrow shares of Tesla to be able to revenue if the worth drops. Here he is suggesting that the company—whose mission is to guard buyers from CEO misconduct—is definitely harming the worth of Tesla’s inventory by imposing securities legal guidelines towards Musk and Tesla.
In June, Musk wrote that shorts “have about three weeks before their short position explodes”—presumably a prediction that Tesla’s sturdy quarterly outcomes would trigger Tesla’s inventory to rise.
Saturday’s settlement required Musk to step down as Tesla’s chairman, appoint two new unbiased administrators, and pay a $20 million positive. The deal additionally requires Tesla’s board to “establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications.” But in line with Recode’s Teddy Schleifer, that requirement doesn’t kick in for 90 days after signing, giving Musk just a few extra weeks of unfettered tweeting.
On Monday, Musk had one other tweet that gave the impression to be mocking the SEC, although it wasn’t almost as pointed:
Naughty by Nature https://t.co/muZdxJWjyZ
— Elon Musk (@elonmusk) October 1, 2018
The inventory market didn’t appear thrilled about Musk’s newest tweet as we speak. After falling 4.Four p.c throughout the common buying and selling session, Tesla’s inventory worth fell by one other two p.c within the minutes after Musk tweeted.
The decide overseeing the case has requested Tesla and the SEC to write down a joint memo justifying the settlement. It’s due subsequent week. Ordinarily, this is able to simply be a formality, however Musk’s tweet is actually not going to assist the method go extra easily.