Tesla's Musk mocks SEC as judge demands they justify fraud settlement

Tesla Directors Propose James Murdoch To Succeed Musk As Chairman Report

Tesla Directors Propose James Murdoch To Succeed Musk As Chairman Report

"Just want to that the Shortseller Enrichment Commission is doing incredible work, "Musk, a frequent critic of investors betting against the electric auto company said in the tweet". Musk responded by further bullying short sellers on Twitter.

At the time, short-sellers, who make a profit by borrowing shares, selling them and then buying them back at an expected lower price, claimed to have lost millions thanks to Mr Musk's comments.

The sell-off started in morning trading the day after Musk stirred nerves about a settlement of his securities fraud lawsuit by calling the SEC the "Shortseller Enrichment Commission" on Twitter.

The settlement last Saturday was meant to resolve charges that Musk misled investors in tweets on 7 August, including that there was "funding secured" to take his Palo Alto, California-based company private at $420 per share.

Musk is believed to have experienced a change of heart after seeing Tesla's stock plunge the following morning.

"Corporate officers hold positions of trust in our markets and have important responsibilities to shareholders", SEC Enforcement Division co-director Steven Peikin said in a statement.

HMD unveils True Wireless Earbuds and Pro Wireless Earphones
The True Wireless earbuds offer 3.5 hours of play time, are waterproof, and can get three charges from the wireless charging case. The 3GB/32GB variant has been priced at 299 euros, whereas the 4GB/64GB variant has been priced at 349 euros.

Additionally, the agreement requires its board to create within 90 days a permanent committee comprised exclusively of independent directors that will oversee the implementation of the settlement SEC and set guidelines for top executives' communications with the public.

Musk came up with a startling announcement that he has considered de-listing the company from the stock exchange. The settlement was announced on September 29, two days after Musk was charged.

Several news outlets reported that the agency sued after Musk rejected a settlement under which he would have had to step down as chairman for two years, add two independent directors to the company's board, and pay a $10 million fine. The terms of Musk's SEC settlement has not yet been finalized, but he's facing a $20 million Dollars fine and the possibility of losing Tesla's chairmanship for the next three years.

The New York Times reported Tuesday that James Murdoch had been eyed by some board members as a potential replacement, though outside groups like proxy monitor Glass Lewis have voiced concerns about Murdoch's lack of relevant experience.

U.S. District Judge Alison Nathan, who must approve the settlement, has given the SEC, Musk and Tesla until October 11 to explain why the terms are fair and reasonable. Tesla and Twenty-First Century Fox were not immediately available for comment outside regular business hours.

Musk doubled down on the tweet shortly after.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.