The Justice Department is investigating short sellers who have been a target of Musk's ire. He took a shot at the Securities and Exchange Commission.
Musk told CNBC in an email that he was encouraged by the Justice Department investigating short sellers.
According to reports, the Justice Department is investigating two investors who have previously shorted the company's stock. The legal fight between the company and the SEC has been going on for a long time.
Musk has taken his dislike for the SEC to the public. He referred to the agency as a short seller enrichment commission and then made a dig at the SEC.
The SEC recently submitted a letter to a federal judge responding to Musk's allegations that the SEC had broken promises and engaged in a pattern of conduct. Musk was accused of fraud by the SEC.
The SEC is looking into whether the company properly notified shareholders and the public of the fire risks associated with its solar panel system.
The SEC didn't comment.
Musk was against firms that rely on short selling.
Short selling and complex derivatives are often used by hedge funds to take advantage of small investors. They will short a company, conduct a negative publicity campaign, and then cash out again and again. The term for this is short and distort, Musk said.
Musk sent a box of shorts to David Einhorn, who was a short seller, after he skewered them.
Musk is known for moving markets with his social media posts, prompting investors to call for more regulatory involvement. Critics have called him a market player.
During an email exchange, the CEO of the two companies spoke about his standoff with the Biden administration.
According to The Wall Street Journal, the DOJ is investigating instances of spoofing and spoofing involves illegally using fake orders.
The founder of Muddy Waters Research, a critic of Musk, is among the investors who have been served search warrants by federal investigators.
Block said in a statement to the Journal that it is critical for all stakeholders to develop data analysis capabilities to detect problematic trading. It is dangerous to give these analyses to non-practitioners.
The New York Times reported last year that Block was no longer shorting the electric vehicle giant. In a letter obtained by the Times, Block explained his decision to allies by saying that the market cap, the luster, and thelan of Elon are still there.
Andrew Left's computers were seized by federal agents. Left said in 2020 that he was shorting the company's stock.
Musk's war with short sellers goes beyond advocating for his company. He spoke out against shorts when large groups of retail investors helped pump the stock up 1,500% in two weeks.
U can sell houses that you don't own, but you can't sell cars that you don't own.
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