{"id":1332412,"date":"2022-02-23T12:44:07","date_gmt":"2022-02-23T17:44:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1332412"},"modified":"2022-02-23T12:52:50","modified_gmt":"2022-02-23T17:52:50","slug":"elon-musk-cheers-on-doj-probe-of-short-sellers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-cheers-on-doj-probe-of-short-sellers\/","title":{"rendered":"Elon Musk Cheers on DOJ Probe of Short Sellers"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Felon-musk-cheers-on-doj-probe-of-short-sellers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1332412&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Tesla CEO Elon Musk took fresh shots at short sellers and the SEC, two of the billionaire&#8217;s most frequent targets for insults and criticism.<\/li>\n<li>He also lauded the Justice Department for launching a probe into short sellers. Two one-time Tesla shorts are reportedly under federal investigation.<\/li>\n<li>&#8220;I am greatly encouraged by the Justice Department investigating short sellers,&#8221; Musk told CNBC in an email Tuesday. &#8220;This is something the SEC should have done, but, curiously, did not.&#8221;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107014134\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">Elon Musk gestures as he speaks during a press conference at SpaceX&#8217;s Starbase facility near Boca Chica Village in South Texas on February 10, 2022.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Jim Watson | AFP | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><a href=\"https:\/\/www.cnbc.com\/quotes\/TSLA\" target=\"_blank\" rel=\"noopener\">Tesla<\/a> CEO Elon Musk told CNBC that he is glad to see the Justice Department is investigating short sellers, who have long been a target of the billionaire&#8217;s ire. He also took a fresh shot at the Securities and Exchange Commission, another of his frequent targets.<\/p>\n<p>&#8220;I am greatly encouraged by the Justice Department investigating short sellers,&#8221; Musk told CNBC in an email Tuesday. &#8220;This is something the SEC should have done, but, curiously, did not.&#8221;<\/p>\n<p>The Justice Department is reportedly investigating two investors who have previously shorted Tesla&#8217;s stock. The SEC, meanwhile, has been scrutinizing Tesla, which has prompted a vicious legal fight between the company and the regulator.<\/p>\n<p>Musk has taken his grudge with the SEC to the public, insulting the regulator at times. <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1047943670350020608\" target=\"_blank\" rel=\"noopener\">In 2018<\/a>, he called the agency the &#8220;Shortseller Enrichment Commission.&#8221; <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1278764736876773383\" target=\"_blank\" rel=\"noopener\">Nearly two years later<\/a>, he made a vulgar dig at the SEC.<\/p>\n<p>The SEC recently <a href=\"https:\/\/www.cnbc.com\/2022\/02\/19\/after-tesla-ceo-elon-musk-alleged-unrelenting-investigation-sec-pushes-back.html\">submitted<\/a> a letter to a federal judge responding to previous allegations by\u00a0Musk that the agency had &#8220;broken promises&#8221; and engaged in a &#8220;pattern of conduct&#8221;\u00a0amounting to harassment\u00a0after an earlier settlement agreement. The SEC had <a href=\"https:\/\/www.cnbc.com\/2018\/09\/27\/tesla-falls-4percent-on-report-elon-musk-sued-by-sec.html\">accused Musk of fraud<\/a> in 2018.<\/p>\n<p>Reuters <a href=\"https:\/\/www.reuters.com\/markets\/commodities\/exclusive-sec-probes-tesla-over-whistleblower-claims-solar-panel-defects-2021-12-06\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> that the SEC is also looking into whether Tesla did not properly notify shareholders and the public of the complaint, which focuses on fire risks linked to the company&#8217;s solar panel system.<\/p>\n<p>The SEC declined to comment.<\/p>\n<p>In addition, Musk took aim at investing firms that rely on short selling in his email exchange with CNBC.<\/p>\n<p>&#8220;Too often, sophisticated hedge funds have used short selling and complex derivatives to take advantage of small investors. They will short a company, conduct a negative publicity campaign to drive the stock price down temporarily and cash out, then do it all over again many times. The term for this, as you may be aware, is &#8216;short &#038; distort,&#8217; &#8221; Musk said.<\/p>\n<p>In 2020, Tesla notoriously <a href=\"https:\/\/www.cnbc.com\/2020\/07\/06\/tesla-mocks-shortsellers-with-a-sale-of-red-satin-shorts.html\">skewered short sellers<\/a> by selling red satin &#8220;Short Shorts.&#8221;<\/p>\n<p>Musk is known for moving markets himself, often with tweets, prompting investors to call <a href=\"https:\/\/www.cnbc.com\/2021\/01\/29\/elon-musks-tweets-are-moving-markets.html\">for more regulatory involvement<\/a>. Critics have called him a market manipulator.<\/p>\n<p>The Tesla and SpaceX CEO&#8217;s comments came during the same email exchange during which he also spoke out <a href=\"https:\/\/www.cnbc.com\/2022\/02\/22\/elon-musk-accuses-biden-of-ignoring-tesla-but-says-he-would-do-the-right-thing-if-invited-to-white-house.html?__source=sharebar|twitter&#038;par=sharebar\">about<\/a> his ongoing standoff with President Joe Biden&#8217;s administration.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The DOJ probe, according to The <a href=\"https:\/\/www.wsj.com\/articles\/justice-department-is-pursuing-wide-ranging-investigation-of-short-sellers-sources-say-11645019122\" target=\"_blank\" rel=\"noopener\">Wall Street Journal<\/a>, is focusing on alleged instances of so called &#8220;spoofing&#8221; and &#8220;scalping.&#8221; Spoofing involves illegally using fake orders to pump or crash a stock price while scalping refers to when activist investors close out their positions without disclosing that move.<\/p>\n<p>Muddy Waters Research founder Carson Block, a vocal critic of Musk&#8217;s who has shorted Tesla stock, is reportedly among the investors who have been served search warrants by federal investigators in the short-seller probe.<\/p>\n<p>Block said in a statement to the Journal: &#8220;I&#8217;ve been saying for several years that it is critical for all stakeholders in the ecosystem to develop sophisticated data analysis capabilities to detect problematic trading. It&#8217;s dangerous to outsource these analyses to nonpractitioners.&#8221;<\/p>\n<p>The New York Times reported last year that Block was moving on from shorting the electric vehicle giant. In a <a href=\"https:\/\/www.nytimes.com\/2021\/08\/12\/business\/dealbook\/carson-block-tesla-elon-musk.html\" target=\"_blank\" rel=\"noopener\">letter<\/a> the Times obtained, Block explained his decision to allies by saying &#8220;the market cap, the luster, the \u00e9lan of Elon, is still there.&#8221;<\/p>\n<p>Andrew Left, another one-time Tesla short, had his computers seized by federal agents, according to Bloomberg. Left said in <a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/andrew-left-shorting-tesla-stock-again-reasons-citron-betting-against-2020-2-1028876660\" target=\"_blank\" rel=\"noopener\">2020<\/a> that he was shorting the company&#8217;s stock.<\/p>\n<p>Musk&#8217;s war with short sellers goes beyond advocating for his company. He spoke out against shorts during the GameStop stock frenzy last year, when large groups of retail investors on Reddit <a href=\"https:\/\/www.cnbc.com\/2021\/01\/27\/gamestop-mania-explained-how-the-reddit-retail-trading-crowd-ran-over-wall-street-pros.html\">helped pump the stock up 1,500% in two weeks.<\/a><\/p>\n<p>&#8220;u can&#8217;t sell houses u don&#8217;t own u can&#8217;t sell cars u don&#8217;t own but u *can* sell stock u don&#8217;t own!? this is bs \u2014 shorting is a scam legal only for vestigial reasons,&#8221; Musk said in a <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1354890601649610753?s=20&#038;t=Brgmbddu_Mjwwy-lIVQYTw\" target=\"_blank\" rel=\"noopener\">tweet<\/a> in January 2021.<\/p>\n<p><em>\u2014 CNBC&#8217;s Lora Kolodny contributed to this article.<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-6\" data-test=\"watchLiveRightRail-3\" data-analytics=\"RegularArticle-watchLiveRightRail-6-3\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,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\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tesla CEO Elon Musk took fresh shots at short sellers and the SEC, two of the billionaire&#8217;s most frequent targets for insults<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1332412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1332412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1332412"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1332412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1332412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1332412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1332412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}