Tesla Stock Drops After Elon Musk Trolls SEC as ‘Shortseller Enrichment Commission’

Musk reached an agreement to settle fraud charges with the SEC last week

Last Updated: October 4, 2018 @ 8:58 PM

Tesla stock dropped two percent on Thursday after Elon Musk lashed out at the Securities and Exchange Commission in a tweet on Thursday.

“Just want to that the Shortseller Enrichment Commission is doing incredible work (sic). And the name change is so on point!” Musk wrote in a tweet published at 4:16 p.m. ET.

Since Musk posted the tweet, Tesla shares have fallen more than two percent in after-hours trading, capping off a day that saw the auto company down more than four percent in regular hours.

Musk’s tweet accused the SEC of working on behalf of investors betting against his company, coming less than a week after he reached an agreement with the agency to settle fraud charges related to a separate Twitter outburst.

As part of the settlement agreement, which still awaits judicial approval, Musk will be forced to step down as chairman of the company and pay a $20 million fine. He will remain CEO.

The charges stem from an Aug. 7 tweet in which the executive said he had the funding to take the company private. The SEC accused Musk of issuing “false and misleading” statements, suggesting in its court filing that he wrote the tweet to goose the company’s stock price.