The SEC wants Tesla to explain Elons 420 tweet

The SEC wants Tesla to explain Elon’s 420 tweet

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Elon Musk, billionaire founder of Tesla, startled the Twittersphere yesterday by announcing he wanted to take the company private at the price of $420 per share. While some speculated the tweet was a joke or a marijuana reference, others took to the market. The tweet sent the stock soaring up 11 percent, causing a halt in trade for a portion of the day.

Now, the Securities and Exchange Commission is looking into the matter.

Am considering taking Tesla private at $420. Funding secured.

— Elon Musk (@elonmusk) August 7, 2018

Wall Street Journal sources say the SEC has since made inquiries to Tesla to find out whether Musk’s tweet was truthful and why he chose to announce such a move on Twitter instead of through a regulatory filing. Musk could be held legally liable if regulators determine he was intentionally trying to boost the stock price with his tweet. We’ve reached out to the SEC and Tesla for more information on the matter.

Musk also indicated in the tweet he’d secured funding for the startling move, though it’s unclear where the funding would be coming from at this time as he has yet to disclose those details. The tweet appeared shortly after news broke that a Saudi Arabian sovereign wealth fund bought a $2 billion stake in Tesla and, according to the WSJ, Musk spoke with a group of Tesla’s board members last week about taking the company private.

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August 8, 2018 at 03:53PM