1 week ago
Tesla could come under an SEC enforcement investigation if regulators from the Securities and Exchange Commission find that CEO Elon Musk’s tweet earlier this week about Tesla’s business dealings was “misleading or false,” according to the Wall Street Journal.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Musk tweeted about the electric car company’s plans to go private on Tuesday, saying “that he planned to take the electric-car maker private at $420 a share, or $72 billion,” WSJ writers Dave Michaels and Michael Rapoport report. Musk said in the tweet he has funding for the move, but didn’t list any specifics.
As reported earlier this week, making business declarations in the way Musk chose to is unprecedented. While the WSJ isn’t sure whether or not the SEC has opened a formal enforcement investigation, people familiar with the matter told the publication that a probe is underway. It is illegal for businesses and corporate officers to share misleading or false information about “meaningful company events” with shareholders, the WSJ notes.Read the full story at the Wall Street Journal