Tesla Stock (TSLA) Falls As Elon Musk Draws Attention For Tweet

Share

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

Tesla delivered 8% more vehicles in the third quarter than Wall Street analysts had expected.

Greenlight's letter came one day after Musk, a longtime critic of short-sellers, appeared to taunt the U.S. Securities and Exchange Commission by calling it the "Shortseller Enrichment Commission" on Twitter. But that doesn't mean Tesla's board can't order Musk to tone done his Twitter act in the best interests of the company. Tesla agreed to name a new chairman within 45 days of the settlement, and to name the new directors within 90 days. Tesla and Twenty-First Century Fox were not immediately available for comment outside regular business hours.

The tweets may imperil a deal struck with the SEC on Saturday - which isn't final - that bars Musk from serving as chairman of the carmaker for three years as punishment for problematic posts he sent about taking Tesla private.

Musk is Tesla's largest shareholder, holding some 22% of the company's outstanding shares at the end of past year. The SEC also hit the billionaire and Tesla each with $20 million fines and is requiring that the board add two new members.

The settlements were related to Musk's infamous "funding secured" tweets regarding a potential move to take Tesla public.

"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.

Senate gets FBI Kavanaugh report, with initial vote Friday
At the hearing, he vehemently defended his innocence and derided what he called "a calculated and orchestrated political hit". Judge Kavanaugh's confirmation depends on Republican senators voting strictly along party lines.

In a separate tweet, Musk took another shot at shortsellers and accused BlackRock Inc of enabling them by saying, "The big funds can & will (sic), as they're suffering a net loss".

Musk and the SEC have been given a week to submit a joint letter to explain why the deal should be cleared.

Widely seen as the driving force behind the company, Musk's talent for promotion has helped Tesla vault much bigger manufacturing operations like General Motors (GM.N) and Ford (F.N) to become America's most valuable auto company. He SEC alleged he rounded up the buyout price for Tesla to $420 a share to amuse his girlfriend at the time with a marijuana-culture reference.

The settlement still needs approval from the courts.

Will Musk's regret his latest Twitter outburst?

Soon after this tweet, he tweeted again about SEC but not to apologize for his earlier tweet but the typo in it. It reached a 52-week high of $387.46 on August 7 when Musk tweeted his plan to take Tesla private.

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

Share