SEC turns up the heat on Tesla, Musk over disclosures

August 17, 2018 03:13 CET

Federal regulators are pressing Tesla’s directors for details on how much information CEO Elon Musk shared with them before he tweeted last week about a potential deal to take the company private, The Wall Street Journal reported Thursday, citing a person familiar with the matter.

Tesla declined to comment.

The U.S. Securities and Exchange Commission already was investigating Tesla about whether it misled investors last year about problems with Model 3 production at its plant in Fremont, California, the Journal also reported.

Musk stunned investors and sent Tesla’s shares soaring 11 percent on Aug. 7 when he tweeted that he was considering taking Tesla private at $420 per share and that he had secured funding for the potential deal.

Fox Business Network reported on Wednesday, citing sources, that the SEC had sent subpoenas to Tesla regarding Musk’s plan to take the company private and his statement that funding was “secured.”

“The SEC is investigating whether Mr. Musk intentionally misled investors when he tweeted about the proposal in a bid to hurt short sellers by driving up Tesla’s stock price,” the Journal reported, citing a person familiar with the matter.

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