Elon Musk Insults SEC After Settlement, Calls It Shortseller Enrichment Commission

Tesla chief executive Elon Musk has mocked the U.S. Securities and Exchange Commission just days after agreeing to a fraud settlement with the regulator.

Taking to his usual place to vent, Twitter, Elon Musk said “Just want to [sic] that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!” he wrote.

Over the weekend, Musk settled with the SEC to charges that he had misled investors following a tweet that he had “funding secured” to take Tesla private at $420 per share. Musk agreed to pay a $20 million fine and step aside as chairman for three years. Additionally, Tesla will have to hand over $20 million.

Musk’s latest tweet came mere hours after U.S. District Judge Alison Nathan ordered the outspoken executive and the SEC to explain in a joint letter why their settlement is fair and won’t hurt the public interest.

Will Musk’s regret his latest Twitter outburst?

Musk’s settlement also required the board of Tesla to implement procedures designed at reviewing his communications with investors, including what he publishes on Twitter.

According to associate professor of law at Santa Clara University, Stephen Diamond, taking shots at the SEC may not be the wisest idea.

“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. If he doesn’t want to put that deal at risk he ought to pay attention to cars instead of Twitter,” Diamond told Automotive News.

Musk initially bailed on a proposed settlement with the SEC where he would have been fined only $10 million and forced to relinquish his role as chairman for two years rather than three.

Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!

— Elon Musk (@elonmusk) October 4, 2018