Mr Musk, 47, has long had a hatred of shortsellers - investors who have been betting on a fall in Tesla stocks. According to the SEC, Musk had no discussion about specific deals with potential financing partners and that he knew the potential transaction was uncertain.
The commission is asking the court for an order stopping him from making false and misleading statements along with repayment of any gains as well as civil penalties. "As citizens of planet earth, we must show our support for innovation, for attempting to create a positive future and for our fearless change agent of the world, Elon Musk", the website states. Shares have been holding in that range as investors are likely waiting to see who will helm the board of directors in Musk's absence - a key part in his $20 million settlement with the SEC. "But just for SEC enforcement action, particularly with a big fine, it's unusual", Jay Hulings said. The lack of support from investors eventually led to his "grudging approval" to reach a settlement with the SEC. The company also has to implement procedures and controls to oversee Musk's communications - including his tweets - and hire a securities counsel.
The SEC declined to comment Thursday.
'I do not think there is any serious chance of the settlement being rejected, based on 2nd Circuit precedent, ' Pritchard added. The settlement was announced on September 29, two days after Musk was charged.
Musk has been vocal about his animus toward short-sellers, especially in the past year as Tesla has struggled to meet the ambitious production goals that the CEO set for its Model 3 vehicle.
The New York Times reported Tuesday that James Murdoch had been eyed by some board members as a potential replacement, though outside groups like proxy monitor Glass Lewis have voiced concerns about Murdoch's lack of relevant experience.
Whether Musk's new tweet puts that agreement in jeopardy is unclear ー just hours before the post, a federal judge, who still must sign off on the deal, asked both Musk and the SEC to submit letters justifying why the settlement is "fair and reasonable".
In the settlement announced over the weekend, Tesla and Musk agreed to pay $20 million each to the regulator while Musk, also a large Tesla shareholder, would step down as chairman but continue as CEO.