US regulators are examining how Tesla Chief Executive Elon Musk announced his plan to take the electric-car maker private and whether his statement was…
US regulators are examining how Tesla Chief Executive Elon Musk announced his plan to take the electric-car maker private and whether his statement was truthful, the Wall Street Journal reported on Wednesday.
Musk announced his plan on Tuesday on Twitter, an unusual move that has drawn scrutiny from the Securities and Exchange Commission, the newspaper said, citing people familiar with the matter.
The agency declined to comment and Tesla did not immediately respond to requests for comment.
Musk tweeted on Tuesday that he had secured funding for the plan, but he has not provided details or evidence, and several securities attorneys told Reuters that Musk could face investor lawsuits if it was proven he did not have secure financing at the time of his tweet.
Tesla’s board on earlier on Wednesday said it was evaluating taking the company private, which would be the biggest leveraged buyout of all time.
