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Tesla's Musk mocks US agency just days after settling with it

07 October 2018

Days after Tesla CEO spurned-then accepted-a settlement with the SEC over his tweets claiming he was taking the automaker private, Musk again took to Twitter to mock the agency, calling it the "Shortseller Enrichment Commission".

In a tweet, Musk appears to be mocking the United States agency by saying, "Just want to that the Shortseller Enrichment Commission is doing incredible work".

Several Twitter users also criticized Musk, who has over 20 million followers on the social media platform, for his tweets targeting regulators and short sellers.

As part of the settlement reached soon afterward, per the SEC, Tesla will also be forming an independent committee that "places additional controls and procedures to oversee Musk's communications".

Musk has long waged a rhetorical war against shortsellers-investors who borrow shares of Tesla in order to profit if the price drops.

And the name change is so on point!' Musk wrote in a tweet on Thursday, as a federal judge mulls his settlement with the SEC. The SEC charged that he made those statements on Twitter knowing or having reason to know that they were false and misleading.

But Musk and Tesla might not even be out of the woods yet.

"It probably doesn't affect the settlement between Musk and the SEC, because it does not deny wrongdoing and does not seem to be material company information", said former SEC enforcement official Alma Angotti, now serving as managing director of risk and compliance at Navigant Consulting, in an email.

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The pair's relationship has dominated headlines in recent weeks after they were caught having a war of words on the training ground.

"Months later, shareholders, creditors, employees and the global economy paid a big price when management's reckless behavior led to bankruptcy", Einhorn said.

The SEC settlement still needs court approval.

Tesla did not immediately respond to request for comment about the latest tweet from Musk.

"Mr. Musk has excellent attorneys", said Marc Leaf, a partner at Drinker Biddle & Reath in NY who used to work for the SEC as an adviser to a commissioner.

Last weekend Mr Musk agreed to step down as Tesla Chairman and pay a $20m (£15m) fine over tweets that he had funding to take Tesla private.

But, after seeing the consequences of it, I think he must be careful about his tweets.

Musk doubled down on the tweet shortly after.

Tesla and Musk's deal with the SEC would allow Musk to stay on as CEO of Tesla (TSLA) and does not require that he admit wrongdoing. The terms of Musk's SEC settlement has not yet been finalized, but he's facing a $20 million Dollars fine and the possibility of losing Tesla's chairmanship for the next three years.

Tesla's Musk mocks US agency just days after settling with it