Elon Musk SEC Twitter raids could turn against us

The settlement between Tesla and the US Securities and Exchange Commission states that CEO Elon Musk will no longer have the opportunity to tweet. Yet on Friday, Musk launched another tweet, which calls the SEC the "Committee for the Enrichment of Short Sellers".

Which give?

Even though Musk's Twitter feed appears to violate the spirit of the recent deal, the SEC is largely unable to stop its tirades until the settlement is approved by Federal Justice Alison. Nathan from the Southern District of New York, which could take several weeks.

She asked Tesla and the SEC to send a joint letter explaining why the settlement is "appropriate" before re-examining the case.

Informed sources say FOX Business SEC regulators are deadlocked – they do not want to punish Tesla's shareholders by falling too low against the publicly traded company – but it is painful to tolerate non-compliance flagrant rules by Musk. Sources close to the case fear that Musk will let the SEC appear for nothing.

Elon Musk is probably in an even more precarious position. Tesla's stock fell after the announcement of the SEC's action against Tesla, but it stabilized thanks to news of the colony. However, he fell 7% Friday after his mockery of the SEC.

Musk relies heavily on the Tesla stock not just because its legacy is tied to the success of the electric car manufacturer. If the stock price drops below $ 360, Tesla will have convertible bonds in $ 1 billion bonds due this spring. The company runs out haemorrhage every quarter and having to pay a billion dollars to the bondholders could push it to the limit.

At this point, it is unlikely that the SEC will seek to amend the settlement, which has allowed Musk to remain at the helm of the company while leaving his position as president. Within 45 days, an independent chairperson will replace Mr. Musk, who will not be eligible for reelection for the next three years. Musk and Tesla must also pay fines of $ 20 million each.

However, it is possible that the federal judge will cancel the agreement. If the settlement is rescinded, the SEC will likely engage in enforcement – it is unlikely that they will be so lenient in this case.

The wisest solution for Musk would be to put down his phone and cross his fingers so that the deal is approved.

For the moment, it seems that the only thing the SEC regulators can do is shake their heads and roll their eyes.

Tesla and the SEC have not responded to FOX Business's requests for comment.

Charlie Gasparino of FOX Business contributed to this report.