DC: The Securities and Exchange Commission (SEC) subpoenaed Tesla regarding CEO Elon Musk’s tweets announcing plans to take the company private, Fox News reported Wednesday.
Tesla’s shares tumbled 4 percent to $333.33 following the report. Musk said in an Aug. 10 tweet that he was considering taking Tesla private at $420 per share. He also suggested that he had “funding secured” for the venture, according to a tweet from Fox News’s Charles Gasparino.
“Subpoenas signal investigation has reached the “formal” stages,” Gasparino noted. Tesla declined to comment, while the SEC was not immediately available for comment. Musk told his Twitter followers that he was planning to take the company private at $420 per share, far more than the company’s current worth.
His tweet followed a report suggesting Saudi Arabia became a major Tesla shareholder earlier this year. more