Published: Fri, October 05, 2018
Money | By Armando Alvarado

Tesla CEO Musk mocks SEC on Twitter after fraud lawsuit

Tesla CEO Musk mocks SEC on Twitter after fraud lawsuit

A 1:16 p.m. California time, Mr. Musk's Twitter account tweeted, "Just want to [sic] that the Shortseller Enrichment Commission is doing incredible work". "And the name change is so on point!"

Tesla's CEO, Elon Musk, mocked the US Securities and Exchange Commission on Thursday, hours after a federal judge ordered him and the regulator to justify their settlement of securities fraud charges.

Tesla CEO Musk may have settled with the U.S. Securities and Exchange Commission over that August tweet claiming he had the funds to take his electric auto company private, but that hasn't stopped the eccentric billionaire from tweeting.

However, the next day, Tesla's attorneys were back at the SEC requesting them for a second chance, this time with Musk's "grudging approval", the paper said.

The SEC sued him last week, accusing him of misleading investors and pushing to ban him from running any public company.

About 40 minutes after his initial tweet, Musk published another in which he addressed a typo in that tweet and appeared to target the SEC again.

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A small amount of ricin exposure by inhalation or ingestion can be deadly within three days, according to the CDC. The agency did not disclose any details about what was in the envelope or where it was received.

As part of the settlement, Musk must also step down as the chairman of the board for three years. The SEC also hit the billionaire and Tesla each with $20 million fines and is requiring that the board add two new members.

BlackRock declined to comment on Musk's tweet.

On Thursday, Tesla shares fell 2.4% to $275 in after-hours trading.

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.

The lawsuit threatened to pull Tesla and Musk into a long drawn-out fight that could have undermined the company's operations and ability to raise capital. But according to Recode's Teddy Schleifer, that requirement doesn't kick in for 90 days after signing, giving Musk a few more weeks of unfettered tweeting.

Pritchard said before Musk's tweet that he saw no "serious chance" for a rejection of Musk's settlement, based on 2nd Circuit precedent.

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