The Latest: Report-SEC probing Musk's Tesla-buyout tweet
Aug. 08, 2018
SAN FRANCISCO (AP) — The Latest on Tesla CEO Elon Musk's plan to take the electric car maker private (all times local):
The Wall Street Journal is reporting that government regulators have opened an inquiry into Tesla CEO Elon Musk's Tuesday tweet disclosing a proposed $72 billion buyout of the electric car maker.
The Journal reported that the Securities and Exchange Commission is asking whether a Musk tweet on the subject was factual. In that tweet, Musk announced that he had secured financing to buy Tesla's outstanding shares at $420 per share. The newspaper cited unidentified people familiar with the matter.
The SEC declined to comment on the report Wednesday. Tesla didn't immediately respond to a request for comment.
The Journal reported regulators are also questioning whether the disclosure about the proposed buyout in a nine-word tweet fulfills Tesla's legal obligations as a publicly traded company.
Board members at Tesla are evaluating CEO and Chairman Elon Musk's $72 billion proposal to take the electric car and solar panel maker private.
Six of nine members say in a statement Wednesday that Musk began talking with the board about the move last week. This included discussing how being a private company could better serve Tesla's long-term interests. The statement says board members met several times and also addressed funding for the move.
Musk, his brother Kimbal and director Steve Jurvetson were not included in the statement.
The eccentric Musk announced the bombshell move Tuesday on Twitter, writing that he had secured funding to buy Tesla Inc.'s shares at $420 each.
Shares rose 11 percent Tuesday but fell slightly Wednesday to $377.96.