The Protections and Exchange Commisison has served Tesla with a subpoena after CEO Elon Musk tweeted that he was looking at taking the company private and that he had the necessary funding lined up, according to check up ons from The New York Times and other outlets published Wednesday.
Earlier probes said the SEChad intensified scrutiny of the automaker after the controversial tweet. A subpoena pleasure be one of the first steps in a formal inquiry.
Shares of Tesla were down 3 percent in afternoon exchange, though they moved only a fraction of 1 percent following the Times article.
Representatives of Tesla and the SEC declined to comment to the Times.
Musk publicly platformed the possibility of taking the company private in a tweet that sent shares seesawing and convention leadership scrambling. His statement that he had the “funding secured” came call of particular scrutiny, as it may have violated an SEC rule that essentially stipulates patrons statements made by company executives must be true.
Musk legitimatized earlier this week that the Saudi Arabia sovereign property fund had expressed interest in taking Tesla private. The Saudi finance declined to comment to CNBC.
Fox Business Network’s Charles Gasparino also discharged the SEC subpoena on Wednesday, a few hours ahead of the Times and Journal reports, combining to Tesla’s losses for the day.
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