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Shares of Tesla Inc. slid on Friday in the wake of CEO Elon Musk, who had appeared to mock the US Securities and Exchange Commission and renewed his criticism of short sellers less. a week after entering into an agreement with fraud regulators.
Tesla Stock
TSLA, -6,12%
fell by more than 6 %% in the midday trade and traded at 262.62 USD earlier in the trading session. It was the worst-performing title of Nasdaq 100
NDX, -1.72%
on the day, and about to lose ground on the week, despite rising 17% Monday.
Musk on Twitter on Thursday appeared to hit the SEC, calling it "short sellers' enrichment commission".
I just want the Short Dealer Enrichment Commission to do an incredible job. And the change of name is so timely!
– Elon Musk (@elonmusk) October 4, 2018
Musk also said that short sellers, who are betting on a downside, are "destroyers of value".
Read also: Short sellers are not bad, but they are misunderstood.
What they do should be illegal
– Elon Musk (@elonmusk) October 4, 2018
In a separate tweet, he took a hit at BlackRock Inc
BX, -1.19%
:
Big money can and does go because they have a net loss. Index managers like Blackrock pocket are making excessive profits with short-term loans while pretending to charge low rates for "passive" tracking of the index.
– Elon Musk (@elonmusk) October 5, 2018
Musk and the regulators reached an agreement on Saturday to put an end to the SEC's accusations that it misled investors and violated securities laws by tweeting on August 7 that it had "secured funding" for Tesla to be privatized. The regulation has not yet been approved by the court.
See also: Judge wants Musk and SEC to justify deal
Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC's allegations. Under the settlement, Musk and Tesla agreed to pay $ 20 million each, and Musk agreed to resign as Tesla's chairman for a period of three years.
The terms of the agreement also require Tesla to impose controls to oversee Musk's communications on social media. It's hard to know when Tesla intends to implement this part.
The company did not immediately return a request for comment.
Musk's behavior was "odious" and SEC staff are probably not happy, but Musk's tweets are unlikely to cause the SEC to void his agreement because Musk did not deny them SEC allegations in the original complaint, said Andrew Vollmer, a law professor at the University of Virginia.
"I do not consider the tweets that I read as a denial," said Vollmer, SEC's deputy legal adviser.
However, equities faltered again Tuesday after the company announced third-quarter delivery and production numbers above expectations. So far this year, Tesla shares have lost 15.5%, contrasting with the 7.8% gains of the S & P 500 index.
SPX, -0.82%
and 6.8% for the Dow Jones Industrial Average.
DJIA, -0.91%
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