Greenlight comment adds to Tesla losses from Musk mocking SEC

Wil James Murdoch be the new Chairman of Tesla?

Wil James Murdoch be the new Chairman of Tesla?

The judge's request for additional evidence suggests Tesla may not be out of the woods just yet.

Einhorn stated his belief that Tesla is in many ways like Lehman Brothers, which attacked Einhorn when he revealed in May 2008 - a few months before Lehman Brothers declared bankruptcy - that the firm was a risk to the financial system.

Musk renamed the SEC in a tweet as the Shortseller Enrichment Commission.

Venting out on Twitter is nothing new for Musk. "Granted it has only been three days, but it may have been sensible to ask him not to tweet anything related to the company until they had an opportunity to put in the policies, procedures and controls required by the settlement".

The SEC declined to comment Thursday.

Two days later, the agency announced that Musk agreed to a settlement deal that would force him to step down as Tesla's chairman and pay a $20 million fine.

The Tesla boss dislike of short-sellers is well-known: He once called them "jerks who want us to die".




The charges stem from an August tweet in which Musk claimed he had "funding secured" to take Tesla private at a price of $420 per share. He also named dropped Tesla CEO Elon Musk, stating that we need to "leave him the f**k alone". "The vast majority of settlements like this are approved by courts".

The SEC launched an investigation into whether Musk violated securities laws by making "reckless" statements that caused such dramatic movements in the stock and lost some investors significant amounts of money.

Thomas Gorman, a partner at Dorsey & Whitney in Washington, DC, said Musk might argue that the latest tweet might be a mere "personal lament", and not a violation of the settlement. This invited speculation he may have been referring to "operating profit positive" merely hours after Tesla wrapped up the end of a quarter in which he's predicted the company will post positive net income.

"Reading the mind of Elon Musk is beyond my ability, but he is soon to join the SEC in front of a federal judge to defend the recent settlement agreement".

Following the SEC's regulatory action against Musk, Tesla's board said it remains fully confident in his leadership.

Even without the latest controversy, Tesla "has been driving along the edge", said Tim Higgins at The Wall Street Journal.

While the board has not engaged in any "serious" discussions of who should be the chairman, some members of Tesla's board of directors have proposed 21st Century Fox CEO James Murdoch take over the role of chairman following Elon Musk's settlement with the Securities and Exchange Commission.

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