The US Securities and Exchange Commission (SEC) has launched a formal investigation into US electric vehicle manufacturer Tesla after co-founder Elon Musk said on Twitter that he thinks about taking the company private, US media reported on Wednesday.
WASHINGTON (Pakistan Point News / Sputnik - 15th August, 2018) The US Securities and Exchange Commission (SEC) has launched a formal investigation into US electric vehicle manufacturer Tesla after co-founder Elon Musk said on Twitter that he thinks about taking the company private, US media reported on Wednesday.
Fox business news reported on Wednesday that the SEC office in San Francisco, California, sent subpoenas to Tesla regarding its privatization plans and to determine whether Musk intentionally misled investors.
Last week, Musk claimed via Twitter that could take the California-based company private at a price of $420 per share, adding that the funding for such a move has already been secured.
The report said if Musk's funding disclosure was inaccurate, which appears to be the case, it would create a new round of legal issues for the 47-year-old billionaire.
According to Fox Business News, Tesla and the SEC declined to comment on the investigation.
Teslas stock was down by more than 11 points as of 2 p.m. EST on Wednesday.
