Wall Street watchdog SEC subpoenas Tesla over Elon Musk’s plan to take it private
The 47-year-old billionaire’s tweet about secured funding may have violated US securities law if he misled investors and is still working to secure funding
Washington — The US Securities and Exchange Commission has sent subpoenas to Tesla regarding CEO Elon Musk’s plan to take the company private and his statement that funding was "secured", Fox Business Network reported on Wednesday, citing sources. The electric carmaker’s shares fell as much as 4% but cut their losses after Goldman Sachs said it was dropping equity coverage of Tesla because it is acting as a financial adviser on a matter related to the car maker. Investors viewed the Goldman statement as confirming a tweet from Elon Musk on Monday about working with Goldman, even as the reported subpoenas indicated the SEC has opened a formal investigation into a matter. The latest news extended the roller-coaster ride for Tesla investors in recent days, adding to uncertainty about the future course of the company and whether a deal can be done amid growing regulatory complications. Tesla and the SEC declined to comment. Musk stunned investors and sent Tesla’s shares soaring 11% when...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.