Tesla CEO Elon Musk mocks SEC as 'Short-Seller Enrichment Commission'

By Elon MuskFOXBusiness

Tesla shares move on Gasparino tweet about SEC investigation

FBN’s Charlie Gasparino on how the SEC is investigating Tesla and CEO Elon Musk’s stated production goals for the Model 3.

Tesla CEO Elon Musk criticized the U.S. Securities and Exchange Commission in a tweet Thursday, referring to the stock-market regulator as the “Short-Seller Enrichment Commission.”

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The embattled executive mockingly said the “Short-Seller Enrichment Commission” is “doing incredible work,” he wrote in a Twitter message. “And the name change is so on point!”

The SEC declined to comment on the tweet.

Tesla has ranked as the most shorted stock in the U.S., based on recent data from S3 Partners. Musk has often criticized short-sellers, once referring to them as “jerks who want us to die” in a 2017 interview with Rolling Stone. Short-sellers are investors who bet on a stock’s decline.

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Musk’s comments on the SEC come less than a week after he reached a settlement with the SEC, which sued him over his declaration that he had “funding secured” to take Tesla private. The go-private plan, which has since been scrapped, drew the ire of securities regulators who argued in the lawsuit that Musk committed fraud by issuing “false and misleading” statements. Under terms of the settlement, Tesla and Musk will each pay a $20 million fine, and Musk must give up his role as chairman.

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Tesla shares, which fell more than 4 percent Thursday, retreated another 2 percent in after-hours trading.

Earlier Thursday, FOX Business’ Charlie Gasparino reported that the SEC continues to investigate the electric-car maker over possible misstatements related to production and profitability targets.

Meanwhile, a federal judge has asked Tesla and the SEC to demonstrate why their settlement was “fair and reasonable.” U.S. District Judge Alison Nathan in Manhattan said both parties must submit a letter by Oct. 11.

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