Irony is he will probably burn more shorts with this announcement than he did with the initial set of tweets... and the SEC helped him do it this time around!
Related question regarding burning the shorts. The SEC said the $40 million in fines would go to aggrieved investors in a court approved process. But the people who were hurt the most by Musk's initial tweet were short sellers with stop loss orders. But I don't think they would classify as "investors", considering they profit when TSLA goes down.
Does anyone know how this process works, or do you think short sellers would have a claim to some of that $40 million?
The biggest burns are the people who bought in at $370 thinking that Elon Musk would be selling the company at $420.
Shorts may have gotten margin called, but the stock was skyrocketing on the news. Everyone who bought stocks during the tweet in question is basically able to sue for damages.
Does anyone know how this process works, or do you think short sellers would have a claim to some of that $40 million?