Will Elon Musk's Tweets Hurt Tesla In the Long Run?

Will Elon Musk's Tweets Hurt Tesla In the Long Run?

Musk appears to have run afoul of the $20 million settlement he recently reached with the Securities & Exchange Commission, with a tweet that called the federal regulator the "Shortseller Enrichment Commission" and mocking the "name change".

Elon Musk has posted a tweet about the "Shortseller Enrichment Commission" doing incredible work.

Musk has been open about his thoughts on investors who are betting against Tesla known as short-sellers.

The settlement also required Tesla's board to implement procedures for reviewing Musk's communications with investors, which include tweets.

The lawsuit threatened to pull Tesla and Musk into a long drawn-out fight that could have undermined the company's operations and ability to raise capital.

Shares of Tesla closed down 4.4 percent at $281.83, and fell another 2.2 percent after market hours following Musk's tweet.

A little more than an hour after his initial tweet about the SEC on Thursday, one follower wrote to Musk that he seemed to be working against Tesla investors.

The tweet on Thursday was "plainly a statement that the SEC's case against Musk lacked merit", Crimmins said.

Shares of the company, down around 14 percent this year but still up nearly 30 percent since the start of 2017, were last down 6.9 percent at $262.63.

Tesla CEO Musk may have settled with the U.S. Securities and Exchange Commission over that August tweet claiming he had the funds to take his electric vehicle company private, but that hasn't stopped the eccentric billionaire from tweeting.

Both Tesla and the SEC did not respond to requests for comment by FOX Business.

The settlement was announced on September 29, two days after Musk was charged.

Murdoch, who owns roughly 10,000 shares of Tesla worth about $US3.03 million at Wednesday's price, also serves on the boards of Sky, TrueX Media, 21st Century Fox, New Corp, and Yankee Global Enterprises, as well as a handful of arts organisations, according to Bloomberg data.

"Mr. Musk has excellent attorneys", said Marc Leaf, a partner at Drinker Biddle & Reath in NY who used to work for the SEC as an adviser to a commissioner.

Former SEC lawyers questioned the wisdom of Musk's latest tweet, but said it was unlikely to jeopardize the settlement, which prevents Musk from denying wrongdoing or suggesting that the regulator's allegations were untrue. Relating Musk and Tesla to the Lehman Brothers' downfall during the recession, Einhorn said, Musk's "ever more aggressive deceptions" are "about to catch up to TSLA".

Elon Musk: the man, the meme, the legend...

The judge gave Tesla and the SEC one week to submit a joint letter explaining the settlement in further detail.

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