U.S.-based electric vehicle manufacturer Tesla has been hit with subpoenas from the U.S. Securities and Exchange Commission (SEC) regarding CEO Elon Musk’s recent tweets about taking the company private.
The subpoenas were sent to Tesla to find out more information about its plans to go private and to see if Musk purposely mislead investors with his August 7th, 2018 privatization tweets, according to the Fox Business Network.
The SEC has been inquiring into Tesla’s business since Musk published those August 7th tweets and it looks like things are starting to get serious.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
His initial tweet claimed that he had “funding secured” for the deal. That specific term has led to a lot of skepticism regarding Musk’s plans.
It’s still unclear whether or not Musk has actually secured funding to take his company private. If Musk didn’t have funding, then he may be accused of stock manipulation.
It’s also as-of-yet unclear if the SEC is simply inquiring into Tesla’s business or if the agency has decided to launch a full-scale investigation.
According to Business Insider even if Musk is charged he’s likely to only receive a small fine.
Source: Business Insider, Fox Business Network Via; Reuters