Tesla Subpoenaed by SEC Over Elon Musk's Tweet
Tesla shares also went down 3 percent.
Tesla has reportedly been served a subpoena from the Securities and Exchange Commission (SEC) after Elon Musk tweeted that he was considering taking the company private, according to the New York Times. Shortly after the news broke, shares of Tesla were down more than 3 percent on Wednesday afternoon.
In the tweet posted on August 7, Elon Musk stated that he had the “funding secured” to take Tesla private; Tesla shares then soared 11 percent the same day. The August 7 tweet came under scrutiny because, in the case that Tesla does not actually have the funding secured to go private, the statement potentially violates an SEC rule stipulating that public announcements made by company executives must be true. A subpoena is a request for further formal inquiry.
Musk posted a follow-up Tweet on August 13 saying that the Saudi Arabia Sovereign wealth fund had expressed interest in helping Tesla go private. Tesla’s board of directors have hired lawyers to prepare for any legal vulnerabilities caused by Musk’s Tweets.
Check out the tweets below and share your thoughts in the comments section.
Also, Elon Musk and Grimes are beefing with Azealia Banks on Twitter.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote. https://t.co/bIH4Td5fED
— Elon Musk (@elonmusk) August 7, 2018
