Elon Musk Calls SEC “Shortseller Enrichment Commission”, Crypto Community Backs ‘Felon Musk’
Elon Musk Calls SEC “Shortseller Enrichment Commission” On Twitter
Elon Musk teased the Securities and Exchange Commission days after settling a fraud lawsuit with the U.S. agency, possibly jeopardizing a deal that allows him to remain Tesla Inc.’s chief executive officer. Musk took to Twitter to mock the agency, calling it the “Shortseller Enrichment Commission.”
The post may test the boundaries of Musk’s agreement not to deny wrongdoing and risk reviving stiffer forms of punishment. Last week, the SEC sought to prohibit him from serving as an officer of a public company. A federal judge still has to decide whether the penalties levied against the CEO are appropriate.
After the now infamous tweet, shares in Tesla sunk over 2% just hours after sending it out on the social platform. It’s worth noting that stock was already down 4.4% during regular hours anyway.
Most Tesla shareholders were didn't like this move by Musk. Tesla bull, Gerber Kawasaki CEO Ross Gerber, was blunt in expressing his disapproval of Musk’s post.
Hedge fund manager David Einhorn compared Tesla to Lehman Brothers Holdings Inc., a company whose bankruptcy Einhorn had predicted four months in advance.
“Like Lehman, we think the deception is about to catch up to Tesla. Elon Musk’s erratic behavior suggests that he sees it the same way.”
Musk has been vocal about his animus toward short-sellers, especially in the past year as Tesla has struggled to meet the ambitious production goals that the CEO set for its Model 3 vehicle.
“Short sellers are desperately pushing a narrative that will possibly result in Tesla’s destruction,” Musk said in an interview with New York Times.
He has accused Tesla short sellers spreading a negative image and last year he even called them “jerks who want us to die.” 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.”