SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal
This comment I made a few weeks ago is coming alot closer to the truth than I would have expected.<p>I hope for Space X and Tesla&#x27;s sake that the reports of a directory and Executive ban don&#x27;t come true.<p><a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=18016250#18016292" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=18016250#18016292</a><p>SpaceX is doing well, Tesla has pulled itself back from the brink and may actually become a profitable car company.<p>All Elon had to do was keep his head down and not pick twitter fights....<p><i></i>EDIT<i></i> one thing I should point out is that some people have questioned if the tweet had any adverse affect at all on the shorts, given that the stock is down now.<p>The answer is hell yes and the fact that the stock ash gone down since the tweet only strengthens the shorts case.<p>The reason is that when you are short the biggest issue you have is that the stock could go against you, in this case that means it could go up.  So to guard against that you generally  have a price level in which you would exit the trade.<p>So when Elon tweeted, a whole whack of shorts got stopped out, intentional or by their risk limits.  Infact there is a lawsuit already filed by Citron due to this.  That momentary bump, while short lived was more than enough to close out some short positions.<p>If he&#x27;s found to be in the wrong here by the SEC, then it seems like it wouldn&#x27;t be too hard to find him guilty in the coming lawsuits.