Although I am not a fan of Elon's tweets lately, I must admit that I can understand his frustration with those who engage in short-selling stocks while at the same time promoting negative, and often false or misleading, news.
Short selling itself should not be harmful. What I see as detrimental is the "pumping down" of a stock by short sellers.
There are laws in the books addressing securities fraud. There are laws that prevent "pump and dump"; that is, buying stock, spreading false or misleading positive rumors in order to cause the price to go up, them dumping (selling) the stock at a higher price.
To me, a short-seller should be subject to the same laws as any other investor. Yet, they are not, and I see that as an unfair advantage and one that the SEC should look into.
Why doesn't that same concept of "pump and dump" apply to short-sellers? Why are they allowed to "dump and pump"?
In that part, I absolutely agree with an Elon Tweet