Dear Elon Musk,

I urge you to address the pervasive issue of market manipulation by Market Makers (MMs), Hedge Funds (HFs), and High-Frequency Traders (HFTs), particularly concerning Tesla ($TSLA) and other stocks that appear to be heavily manipulated. This matter has become a significant point of contention and debate, especially within the retail investor community.

There are widespread accusations that MMs and HFs engage in excessive short selling, sometimes even resorting to naked short selling—selling shares without first borrowing them—to artificially depress stock prices. The sentiment on social media platforms like X is one of frustration, with many investors pointing to manipulated price movements, especially during periods of low liquidity or around pivotal events like news releases or regulatory investigations.

The use of zero-day options by MMs and HFs is another concern, as these instruments can facilitate rapid, volatile price movements, particularly on days with reduced trading volume, such as holidays. This practice is believed to benefit those with insider knowledge or market power significantly.

The complexity of today’s financial markets, coupled with the rapid evolution of trading technologies like algorithms used by HFTs, presents substantial regulatory challenges. Proving intent in cases of market manipulation is both legally and technically demanding, yet action must be taken.

The Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, is often criticized for failing to ensure market integrity. There’s a notable pattern where stock prices across multiple sectors drop simultaneously, which strongly suggests manipulation through algorithmic trading.

Your influence could help catalyze change. By bringing attention to these issues, supporting legal actions against manipulators, or advocating for stricter regulations and better enforcement mechanisms, you could lead the charge toward a fairer market.

Thank you for considering this critical issue.

2025-01-11

Sincerely, Barron Greenwalt