The Securities and Exchange Commission is “intensifying” its inquiry into Tesla, Bloomberg reports.
The Securities and Exchange Commission is “intensifying” its inquiry into Tesla, Bloomberg reports.
The agency on Wednesday asked Tesla about whether one of CEO Elon Musk’s tweets regarding the possibility of taking the company private was truthful, The Wall Street Journal reported, citing people familiar with the matter.
According to the Journal, the SEC is also looking into why Musk’s first statement about the potential of taking Tesla private was made on Twitter instead of in a regulatory filing. The agency also asked the company whether it believes Musk’s tweet follows SEC rules about protecting investors, The Journal reported.
Bloomberg reports that the agency was gathering information about statements Tesla has made regarding sales and manufacturing targets before its most recent inquiry.
An inquiry from the SEC does not necessarily mean an investigation will follow.
The SEC and Tesla declined Business Insider’s requests for comment.
“Am considering taking Tesla private at $420. Funding secured,” Musk said on Tuesday via Twitter before issuing a formal statement on Tesla’s website.
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