Published: Sat, October 06, 2018
Life&Culture | By Rose Hansen

Elon Musk mocks U.S. agency just days after settling with it

Elon Musk mocks U.S. agency just days after settling with it

Elon Musk's Twitter account on Thursday appeared to mock the Securities and Exchange Commission only days after the Tesla Inc. chief executive settled fraud charges, suggesting the agency was enriching investors betting against the electric-car maker.

"The Shortseller Enrichment Commission is doing incredible work".

The SEC has responded by denying any plans for a name change, but won't be drawn on the content of the Tweet.

The settlement hit a bump in the road on Thursday after the federal judge on the case ordered Musk and the organisation to justify the agreement as "fair and reasonable".

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 company also has to implement procedures and controls to oversee Musk's communications - including his tweets - and hire a securities counsel.

Peter Haveles, a partner in the Trial and Dispute Resolution Practice Group, said Musk's tweets showed his lack of self discipline and puts intense pressure on Tesla board.

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The SEC charged Musk with defrauding investors after the Tesla chairman and CEO tweeted in August about having "funding secured" to take the company private at a certain target stock price.

The comments come five days after Musk reached a settlement with the SEC that required him to pay a $20 million fine and step down as chairperson, but which let him stay on as chief executive of the envelope-pushing carmaker. "Maybe a 420M fine would have been more appropriate?" one Twitter follower said. The Dallas Mavericks owner told Musk that fighting such charges would distract him from running his companies.

"I think it is juvenile and sophomoric and narcissistic, but I don't think it has particular relevance to the subject of the lawsuit against him", said Harvey Pitt, the SEC chairman under President George W. Bush.

Elon Musk has hit out at the USA financial regulator just days after they reached a deal on fraud charges against him. "And it's going to make it much tougher to attract independent directors to join the board". "It's only inviting the SEC to rethink the settlement".

The stock market did not seem thrilled about Musk's latest tweet today. "It's what they do", he said of the SEC.

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