Elon Musk takes swipe at SEC on heels of fraud settlement

Elon Musk takes swipe at SEC on heels of fraud settlement

Gasparino also discusses how Tesla's stock could rise, if the company is able to turn a profit. Tesla is one of the most shorted stocks on Wall Street.

In a tweet referring to the SEC as "Shortseller Enrichment Commission", Musk wrote sarcastically that the regulator was "doing incredible work".

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.

However, the next day, Tesla's attorneys were back at the SEC requesting them for a second chance, this time with Musk's "grudging approval", the paper said.

The SEC and Tesla did not immediately respond to requests for comment. Musk originally refused a settlement but relented on Saturday, agreeing to step down as Tesla's chairman for three years and pay a $20 million fine.

Musk's latest tweet came less than four hours after the USA district judge Alison Nathan in Manhattan ordered him and the SEC to explain by 11 October in a joint letter why their settlement was fair and reasonable and would not hurt the public interest. Musk and Tesla also are required to pay $20 million in penalties each.

The agency accused Musk in its September 27 complaint of misleading investors with his infamous August 7 tweets about having the investor support and "funding secured" to take Tesla private.

Westinghouse Targeted In Hack, US Justice Department Alleges
The cascade of condemnation - from the Australian, British and Dutch governments - does more than just point the finger at Moscow. A leading developer of nuclear power plants, Westinghouse said it has no evidence that Russia's hacking attempts were successful.

"He'll blame the board for taking him out, or the SEC for derailing his genius", Sonnenfeld said.

The fact that the SEC allowed him to remain the CEO of the company is seen as a huge relief for Tesla.

His distaste for short sellers was viewed as a key reason why he briefly proposed taking Tesla private - a short-lived plan that he revealed on Twitter despite, the SEC said, not having lined up the funding he claimed to have gotten for the deal.

Judge Alison Nathan said the court needs to see justification that the settlement is "fair and reasonable".

Will Musk's regret his latest Twitter outburst?

The settlement provided for appointment of a new chairman and directors, as well as moves to oversee Musk's output on social media. Many Tesla investors took to Twitter to complain that Musk was burning their money with his tweets, one going so far as to even say: "I have lost 30 years of my life savings all on Tesla thanks to your tweets, please stop".

Former SEC lawyers questioned the wisdom of Musk's latest tweet, but said it was unlikely to jeopardize the settlement, which prevents Musk from denying wrongdoing or suggesting that the regulator's allegations were untrue.

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