10/5/2018

Musk Mocks SEC Days After Settlement

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Tesla Inc. CEO Elon Musk criticized the U.S. Securities and Exchange Commission last night, only five days after reaching an agreement with the agency to avoid a lawsuit to remove him from the company.

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Tesla Inc. CEO Elon Musk criticized the U.S. Securities and Exchange Commission last night, only five days after reaching an agreement with the agency to avoid a lawsuit to remove him from the company.

Musk, who continuously complains about Tesla short sellers, fired off a tweet last night chiding the SEC decision and calling the agency the “Shortseller Enrichment Commission.”

Last week the SEC filed a federal lawsuit charging Musk with misleading investors in an August tweet that said he was thinking of taking the company private and had the necessary funding secured to do so. Musk rejected a settlement late last week, then changed his mind, agreeing to pay a $20 million fine and step down for two years as Tesla’s chairman.

The settlement also orders Tesla’s board to add independent members and set up a special committee to monitor Musk’s frequent and impulsive tweets. The tentative deal must be approved by U.S. District Judge Alison Nathan by Oct. 11.