Economy

Tesla's Musk appears to mock US SEC on Twitter after settlement

Tesla's Musk appears to mock US SEC on Twitter after settlement

On Monday, Tesla's stock recovered most of those losses after Musk agreed to settle with the SEC.

Einhorn stated his belief that Tesla is in many ways like Lehman Brothers, which attacked Einhorn when he revealed in May 2008 - a few months before Lehman Brothers declared bankruptcy - that the firm was a risk to the financial system.

In a tweet Thursday, Musk congratulated the "Shortseller Enrichment Commission" for its "incredible work", noting its "name change is so on point!"

The New York Times reported Tuesday that James Murdoch had been eyed by some board members as a potential replacement, though outside groups like the proxy monitor Glass Lewis have voiced concerns about Murdoch's lack of relevant experience. Tesla shorts were up more than $1.2 billion after the SEC filed its lawsuit against Musk, according to S3 Partners data from September 28. They then agreed to a settlement that was just recently signed by a judge, stipulating that Musk had to step down as Chairman of Tesla and pay a $20 million fine.

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.

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.

The SEC's deal with Musk is sensible and correct, said Matt Levine at Bloomberg.

More news: Flake Is Officially a 'Yes' on Kavanaugh

Also as part of the settlements, Musk and the company will each pay a $20 million fine to the SEC. The CEO's behavior "remains a wild card", and Tesla's board must now "babysit Musk to make sure he doesn't say anything that could get him or the company in trouble". They don't include any provision that would prohibit him from voting, as a director of Tesla, on its new chairman or its new directors. He SEC alleged he rounded up the buyout price for Tesla to $420 a share to amuse his girlfriend at the time with a marijuana-culture reference. Musk said on Twitter.

The SEC settlement still needs court approval.

In its quarterly letter, Greenlight said on Friday its short position on Tesla was its second-biggest victor in the third quarter.

Soon after this tweet, he tweeted again about SEC but not to apologize for his earlier tweet but the typo in it.

Back in May, Musk rudely cut off analysts on Tesla's first-quarter earnings call.

SEC has not taken any action on the tweet so far and we have not seen any statement from Tesla as of now.