Greenlight comment adds to Tesla losses from Musk mocking SEC

Dwayne Harmon
October 7, 2018

This will target to take away the position of Elon Musk as the director of the company.

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

Another day, another tweet storm from Elon Musk that has the potential to cause major problems for Tesla Inc.

That came just five days after Musk settled SEC fraud charges, in an accord that lets him remain Tesla's chief executive but requires he step aside as chairman.

The SEC and Tesla did not immediately respond to requests for comment.

Elon Musk taunted the Securities and Exchange Commission over Twitter on Thursday shortly after he reached a deal with the agency to settle a lawsuit over his prior tweets.

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 judge said it was her regular practice to request such letters.

The SEC declined to comment Thursday.

"Like Lehman, we think the deception is about to catch up to TSLA", Einhorn's firm Greenlight Capital, which has sold Tesla shares short, said in a quarterly investor letter obtained by Reuters.

Potential Tropical Cyclone Could Hit The US This Week
Happy Saturday night! While you're enjoying your weekend, things are looking to become busy in the world of weather. The depression is expected to turn north later on Sunday and continue in that direction through Wednesday.


Nintendo Switch Online is Live Now
There are some games which do not require the service, such as Fortnite since it's free-to-play, but most other definitely do. Nintendo's Online service has launched, finally bringing with it numerous oft-requested features - like cloud save backups.


Putin calls ex-spy Skripal a 'scumbag' and 'traitor'
It wants to bolster ties with New Delhi to counter China's growing assertiveness, something that has also rattled India. For months, there have been indications from New Delhi that it will sign the deal notwithstanding the USA sanctions.


The SEC and Musk will probably argue that removing Musk as CEO could further harm the company's stock, and thus hurt shareholders, he said.

Shares of Tesla closed down 4.4 percent at $281.83, and fell another 2.2 percent after market hours following Musk's tweet. "Maybe a 420M fine would have been more appropriate?" one Twitter follower said.

Exactly. Short-sellers are value destroyers.

Updated at 5:25 p.m. PT with Musk's tweet about short sellers.

Business Insider got a copy of the settlement documents, which lay out the specific terms that Tesla and Musk agreed to. A federal judge sought to rip up a settlement between Citigroup and the SEC in 2011, launching a three-year battle with the SEC.

One such judge was Jed Rakoff, a colleague of Nathan's who objected to the SEC policy of letting some corporate defendants settle without admitting or denying wrongdoing, as Musk did.

The SEC settlement still needs court approval.

Pritchard said before Musk's tweet that he saw no "serious chance" for a rejection of Musk's settlement, based on 2nd Circuit precedent.

"The Court has a duty to ensure the proposed consent judgment is fair and reasonable", the judge wrote in the order.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER