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Elon Musk gestures as he speaks during a press conference at SpaceX's Starbase facility near Boca Chica Village in South Texas on February 10, 2022. Jim Watson | AFP | Getty Images

Tesla CEO Elon Musk told CNBC that he is glad to see the Justice Department is investigating short sellers, who have long been a target of the billionaire's ire. He also took a fresh shot at the Securities and Exchange Commission, another of his frequent targets. "I am greatly encouraged by the Justice Department investigating short sellers," Musk told CNBC in an email Tuesday. "This is something the SEC should have done, but, curiously, did not." The Justice Department is reportedly investigating two investors who have previously shorted Tesla's stock. The SEC, meanwhile, has been scrutinizing Tesla, which has prompted a vicious legal fight between the company and the regulator.

Musk has taken his grudge with the SEC to the public, insulting the regulator at times. In 2018, he called the agency the "Shortseller Enrichment Commission." Nearly two years later, he made a vulgar dig at the SEC. The SEC recently submitted a letter to a federal judge responding to previous allegations by Musk that the agency had "broken promises" and engaged in a "pattern of conduct" amounting to harassment after an earlier settlement agreement. The SEC had accused Musk of fraud in 2018. Reuters reported that the SEC is also looking into whether Tesla did not properly notify shareholders and the public of the complaint, which focuses on fire risks linked to the company's solar panel system. The SEC declined to comment. In addition, Musk took aim at investing firms that rely on short selling in his email exchange with CNBC. "Too often, sophisticated hedge funds have used short selling and complex derivatives to take advantage of small investors. They will short a company, conduct a negative publicity campaign to drive the stock price down temporarily and cash out, then do it all over again many times. The term for this, as you may be aware, is 'short & distort,' " Musk said. In 2020, Tesla notoriously skewered short sellers by selling red satin "Short Shorts." Musk is known for moving markets himself, often with tweets, prompting investors to call for more regulatory involvement. Critics have called him a market manipulator. The Tesla and SpaceX CEO's comments came during the same email exchange during which he also spoke out about his ongoing standoff with President Joe Biden's administration.