Peter Neupert worked for Microsoft and Amazon-backed Drugstore.com, where he got to know Jeff Bezos. He now advises start-ups.Technologyread more
Regional stability, oil prices and potential for war will all depend on what Iran does with its nuclear program in the event of the deal's termination.World Politicsread more
Instagram began tests that hide "like" counts on posts. That means influencers who market products on Instagram will have to rely on different metrics to show success.Technologyread more
Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
In a series of Twitter posts on Thursday night, Musk alleged that BlackRock and other financial firms pocket "excessive profit" from lending shares they hold to short sellers because "they're suffering a net loss."
Short sellers are investors who bet on the decline of a security, such as a stock. They make money by selling the shares they borrow, and hope the price falls so they can buy them back at a lower price and make profits from it.
Musk also said those funds were "pretending to charge low rates" for their passive "index tracking" products.
Blackrock declined to a comment requested by CNBC.
Fund managers have lowered management fees on certain products due to increased competition in the space. Fidelity Investments said last month it was launching two no-fee index funds, while Vanguard announced in July that investors using its online brokerage platform could trade exchange-traded funds without commission.
At the same time, fund managers have been growing their business in securities lending — which is the process of temporarily transferring ownership of shares or bonds to another party, such as short sellers. The companies earn a fee in return for loaning out their holdings.
Securities lending is a lucrative business, according to an opinion piece by Financial Times in April. The newspaper, which cited a regulatory filing, said BlackRock made $597 million in revenue last year from lending securities.
Musk hit out at that practice, saying "there is no rational basis" for long-term shareholders to engage in that business. He claimed that doing so "dilutes the shareholder base" while giving short sellers "a strong incentive to attack the company by whatever means possible."
The billionaire CEO also said many small investors in passive index funds don't know that their holdings are being lent to short sellers.
Some have called out Musk for not understanding how markets work. Several people who replied to his posts pointed out that investors who believe Tesla would do well have the incentive to lend their shares to short sellers.
"Longs can earn yield while some idiot bets against the stock they believe will go up. There's every incentive for longs to lend out stock," wrote Dave Lauer, who studies market structure and volatility. "Longs" refer to investors who buy an asset on the expectation that the price will rise.
Musk has been an outspoken critic of short sellers, once calling them "jerks who want us to die" and accusing them for spreading "negative propaganda" against Telsa. On Thursday, he also mocked the Securities and Exchange Commission by calling it the "Shortseller Enrichment Commission" and said what short sellers do "should be illegal."
Tesla has been a favored target for short sellers due to its rapid cash burn and struggles in turning a profit. Those who have shorted the company's shares include Jim Chanos of Kynikos Associates and David Einhorn of Greenlight Capital Fund.