Tesla CEO Musk mocks SEC on Twitter after fraud lawsuit

Kanye West performs during the World AIDS Day concert In Times Square in New York on Dec. 1 2014.					Charles Sykes The Canadian Press via AP

Kanye West performs during the World AIDS Day concert In Times Square in New York on Dec. 1 2014. Charles Sykes The Canadian Press via AP

The agreement also requires Tesla to hire or designate a securities law attorney to ensure that posts made by Musk and other executives to Twitter follow SEC disclosure rules.

Musk has a lot riding on Tesla stock and not just because his legacy is tied to the success of the electric-car maker.

"Just want to (say) that the Shortseller Enrichment Commission is doing incredible work".

West has tweeted several times about the need for "innovation" and new technology, and in 2011, he went to visit the SpaceX rocket factory with Musk.

Tesla did not immediately respond to CNBC's request for comment. This rollercoaster started taking him on a more and more unsafe ride in the past two weeks, as he has been charged by the SEC with fraud, settled with the watchdog, has been banned from being chair of Tesla for the next three years and fined, together with the company he leads, $40 million.

The uncertainty surrounding the outcome of the charges, Musk's future with the company and the prospect of a prolonged period of negative headlines drive Tesla's stock near its 52-week lows.

U.S. District Judge Alison Nathan today ordered the SEC, Musk and Tesla to filed documents by October 11 explaining why the agreement is "fair and reasonable".

The SEC charged Musk with defrauding investors after the Tesla chairman and CEO tweeted in August about having "funding secured" to take the company private at a certain target stock price.

Later Thursday, Musk returned to Twitter to deride short-sellers.

Elon Musk will be able to help pick the person who will succeed him as chairman of Tesla. Critics accused the SEC of "letting him off easy", said David Gelles, also at the Times.

He wrote he had "funding secured" for the proposal, which would value Tesla at $420 per share.

Musk's sarcastic tweet could cause Nathan to reject the settlement if it gives her reason to believe that he "has no intention or ability to change his conduct", said Erik Gordon, a business professor at the University of MI.

The SEC settlement still needs court approval.

At this point, it's unlikely the SEC will seek to modify the settlement, which allowed Musk to remain at the helm of the company while stepping down as chairman.

But the deal could affect Tesla, Angotti said.

Under terms of the settlement, neither Musk nor Tesla admitted or denied the allegations.

As part of the settlement reached soon afterward, per the SEC, Tesla will also be forming an independent committee that "places additional controls and procedures to oversee Musk's communications".

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