Culture

Elon Musk calls SEC the 'Shortseller Enrichment Commission' in tweet

Some Twitter users celebrated Musk's tweet, while others expressed disapproval.

Tesla CEO Elon Musk broke his Twitter silence about his deal with the US Securities and Exchange Commission Thursday, dubbing the regulatory agency the "Shortseller Enrichment Commission". "And the name change is so on point!" he tweeted, a jeering reference to the Securities and Exchange Commission, whom he'd settled with five days earlier.

On September 27, the SEC had filed charges against Musk, claiming that he made false statements about taking his company private at $420 a share.

Shares in Tesla closed down 4.4%, and fell further in after hours trading following Mr Musk's tweet.

Musk has often previously vilified short sellers, who bet that the price of a stock will go down, blaming them for spreading bad press and negative analysis on Tesla's prospects.

Musk was subsequently forced to give up his position as Tesla chairman and pay a $20-million penalty to settle fraud charges.

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Tesla was not charged with fraud.

The SEC declined Business Insider's request for comment.

Tesla declined to comment.

"She may want to know why Tesla is paying a fine because the CEO doesn't know when to shut up", said Adam Pritchard, a University of MI law professor and former SEC lawyer.

As part of Musk's settlement with the SEC, Tesla is supposed to monitor its CEO's Twitter posts, but only those that have to do with company news. He also reportedly demanded that Tesla's directors publicly back him, prompting the company to issue a statement saying that it is "fully confident in Elon, his integrity, and his leadership of the company". However, the government was annoyed with Musk's decision to bail on the original agreement so they doubled down on the conditions for the new settlement.

The SEC settlement still needs court approval.



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