Tesla's Musk mocks SEC as judge demands they justify fraud settlement

Share
Tesla's Musk mocks SEC as judge demands they justify fraud settlement

The Securities and Exchange Commission (SEC) has given Tesla just 45 days to find a new chairman.

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.

Later on 4th October, Musk responded to another user's tweet saying that short selling should be illegal by agreeing and describing short sellers as "value destroyers".

The agreement also called for two new independent directors to join Tesla's board. As a part of the settlement, Elon Musk has agreed to pay $20 Mn each to financial regulators and Musk will step down as the company's chairman but remain as chief executive.

Tesla shares declined by more than 2 per cent to $274.50 in extended trading after Musk's tweet.

Tesla Chief Executive Office Elon Musk speaks at his company's factory in Fremont, California, U.S., June 22, 2012.

Tesla and the SEC declined requests for comment.

"It bolsters the SEC's argument that to the extent he was misrepresenting the facts, that he was [tweeting] to screw with the shortsellers", Alma Angotti, a managing director at Navigant and former SEC senior counsel said.

Peter Henning, a Wayne State law professor who was formerly an SEC attorney, said: "It certainly shows his pique at having to settle". But that doesn't mean Tesla's board can't order Musk to tone done his Twitter act in the best interests of the company.

The lack of support from investors eventually led to his "grudging approval" to reach a settlement with the SEC. Musk said on Twitter.

While Musk wanted to fight the SEC, he reportedly had a change of heart when Tesla's stock plummeted almost 14 percent after the lawsuit was announced.

Musk has kept up his cryptic ways this week, tweeting out a music video by rap group Naughty by Nature for their 1991 hit song "O.P.P".

Share

Advertisement

Related Posts

Irving plans long-term stay with Celtics
He'll presumably opt out of his contract following the 2018-19 campaign in order to land a wealthier max contract in free agency. The Boston Celtics point guard said Thursday that he plans to remain with the team following the upcoming season.

Engineers design spacecraft to take humans to moon and beyond
Aerospace giants Lockheed and NASA evealed the plans for the 46 foot tall spacecraft that could carry four astronauts on the moon. The company offered no details on Wednesday about how it would move from the design phase to moon missions in this time frame.

What's missing from the FBI's investigation into Brett Kavanaugh?
Dianne Feinstein of California, the Judiciary Committee's top Democrat, the new interviews appeared to be "very limited" in scope. A couple of them have come forward now on the record to say that they heard of the incident that Ramirez alleges at the time .

South China Sea Cold War revealed
Twice last week, the U.S. sent B-52H Stratofortress heavy long-range bombers tearing through the South China Sea . Several days later, the Chinese military conducted "live-fire shooting drills" in the South China Sea.

Lingerie shops offers wide ranges of options for breast cancer survivors
Joining the politicians at Westminster was Donna Fraser, four-time Olympian for Great Britain and Breast Cancer Now ambassador. These women are typically younger, less than 50 years old, and have not gone through menopause.

Tesla CEO Musk calls the SEC 'the Shortseller Enrichment Commission'
Tesla has consistently been one of the most-shorted US stocks as many investors continue to bet on declines in share prices. The letter should explain why the deal is "fair and reasonable", Nathan said in the court order.

White House pulls out of treaties with Iran, Palestinians
Reporter: "You just addressed Palestine and said it is the 'so-called state.' Is that language productive in achieving the". Earlier this year, the Trump administration killed USA funding for the United Nations' aid for Palestinian refugees.

Drunk birds are terrorizing people in Minnesota
Berry fermentation is the answer. "Oh my! That explains all the birds bouncing off my window lately", said one resident. Younger birds can not handle the toxins as well as older birds, local police chief Ty Techar said in a statement.

More than 250 people worldwide have died taking selfies since 2011
The United States, Russia and India have the most incidents reported but selfie-deaths have happened all across the globe. The victims have been mainly male and under 30 (72%), pouring more water in the mill of the misplaced bravado argument.

LG V40 ThinQ Launched, 5 Cameras, Details & Specs
The P20 Pro offers a regular sensor, a monochrome sensor for better contrast data, and a telephoto sensor for an optical zoom. Additionally, there is a Cine Shot mode , which enables users to create cinemagraphs using any of the phone's three cameras.

© 2015 ExpressNewsline. All Rights reserved.