(Bloomberg) -- Elon Musk doesn't appear ready to end a rant about securities regulators and short sellers anytime soon.
More than 20 hours after mockingly calling the U.S. Securities and Exchange Commission the “Shortseller Enrichment Commission,” Musk continued to post about investors he believes are wronging him and Tesla Inc. Another target of his tweeting has been the giant investment firm BlackRock Inc., which the Tesla chief executive officer has accused of making excessive profit from short lending.
When something sounds too good to be true, it usually is. Way the trick works is companies like Blackrock keep up to 50% of short interest revenue, but suffer almost none of equity decline, as they're just “passive” managers. Blackrock made $597M in short lending last year!
Musk's raving isn't being well received by Tesla shareholders. The stock has dropped as much as 7.4 percent as of 1:24 p.m. Friday in New York trading and is on course for its lowest close since April 2.
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To contact the reporter on this story: Dana Hull in San Francisco at dhull12@bloomberg.net
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Jamie Butters
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