Published: Sun, October 07, 2018
Money | By Bruce West

Musk is at it again, and is now baiting the SEC directly

Musk is at it again, and is now baiting the SEC directly

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West made the comments Tuesday as he checked out student projects at the Detroit College for Creative Studies, a private art school.

Musk's tweet came the same day that Judge Alison Nathan, a US District Court judge in NY, requested a joint letter explaining why she should approve the tentative settlement deal between Musk and the Securities and Exchange Commission.

The tweets may imperil a deal struck with the SEC on Saturday - which isn't final - that would bar him from serving as chairman of the car-maker for three years as a punishment for problematic tweets he sent about taking Tesla private.

The deal also calls for Tesla to pay a $20 million fine and vet any social media posts by Musk that could have a material impact on the company's finances.

"Musk's false and misleading public statements and omissions caused significant confusion and disruption in the market for Tesla's stock and resulting harm to investors", the SEC said in its complaint. This will target to take away the position of Elon Musk as the director of the company.

Judge Alison Nathan said it was a regular practice at the Southern District of New York Court to ask for a joint statement. "And the name change is so on point!"

Tesla's top executive Elon Musk can't keep his fingers off the keyboard.

Greenlight is having a hard year, with its main fund down 25.7 percent through September, but said its Tesla short position was its second biggest victor in the third quarter.

It's also worth noting that, just three minutes after Musk's tweet, Tesla stock prices fell by another 2%.

Tesla said in its 3Q vehicle safety report that "we've registered one accident or crash-like event for every 3.34 million miles driven in which drivers had Autopilot engaged".

Tesla has consistently been one of the most-shorted USA stocks as many investors continue to bet on declines in share prices.

Shares of Tesla ended Thursday down 4.40% to $281.83.

Tesla did not immediately respond to requests for comment.

That Musk stirred further controversy on Twitter could irk regulators, since his tweets are what prompted the SEC's accusations.

The SEC settlement still needs court approval.

"I have lost 30 years of my life savings all in $tsla thanks to your tweets please stop", TrendTrader007 wrote.

However, it later came to light that Musk had not shared this information with even the board of directors, and that the "secured" funding, was actually nowhere in sight.

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