US SEC says Tesla's security fraud case settled despite Musk's mocking tweet

Tesla CEO Elon Musk's 4 October tweet described the SEC as the “Shortseller Enrichment Commission".


The US Securities and Exchange Commission chairman said on Monday that the agency would not revisit its securities fraud settlement with Tesla Inc despite Chief Executive Elon Musk’s tweet mocking the regulator.

 US SEC says Teslas security fraud case settled despite Musks mocking tweet

Elon Musk speaks at a community meeting. Image: Reuters

Jay Clayton appeared to be unaware of the 4 October tweet describing the SEC as the “Shortseller Enrichment Commission,” when CNBC anchors read it to him on Monday.

“He said that?” Clayton asked, declining to comment further. “As far as I’m concerned, that matter is settled.”

Tesla and Musk agreed in September to pay $20 million each to the SEC after he misled investors with tweets on 7 August that said he was considering taking Tesla private.

The settlement requires him to be more restrained on Twitter, prompting speculation that the agency could review the agreement after Musk’s 4 October tweet which came hours after a federal judge ordered him and the SEC to justify their settlement. Shares of the electric carmaker fell as much as 4 percent after that tweet.

“I think it was an appropriate settlement; one that sent a message to the marketplace, letting CEOs know that if they speak, they need to speak accurately,” Clayton said.

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