SEC investigating Musk tweet about taking Tesla private

SEC investigating Musk tweet about taking Tesla private

SEC investigating Musk tweet about taking Tesla private

Yesterday, Tesla CEO Elon Musk tweeted about potentially taking his company private again to expand long-term planning and, probably, to "own the shorts". He called the funding "secured" for what would be the biggest-ever corporate buyout, but he hasn't disclosed details.

His tweet on Tuesday that he was considering taking the company private, and had secured funding to do so at $420 a share, sent the stock surging, as investors salivated over the potential $72bn (£53bn) deal.

A lot of questions remain unanswered but, if Tesla goes through with the plan, it would reportedly be the largest leveraged buyout in history.

Later in the day it became clear that Musk was in fact serious about the bid to take Tesla private when Tesla published a blog post in Musk's name addressed to all employees and when Musk tweeted that he had already lined up the funding for such a move.

Ultimately it will be up to the shareholders whether Tesla remains public or goes private, but the SEC is now curious about how Tuesday's events unfolded.

"Just because" Musk wants it at $420 "doesn't mean that there aren't other people who might be willing to come in with another transaction that would be more beneficial to shareholders", Pitt said.

Last week, Tesla said in its second-quarter update it will generate positive profits and cash flow going forward absent a severe economic downturn.


SoftBank is now not interested in a deal for Tesla after earlier this year taking a stake in General Motors Co's self-driving unit, Cruise, Reuters reported earlier.

By taking Tesla private, Musk believes that the company will be able to sharpen its long-term focus of revolutionising an automobile industry dominated by fuel-combustion vehicles without having to cater to investors' fixation on how the business is faring from one quarter to the next. He announced to the investment world via Twitter on Tuesday, "am considering taking Tesla private at $420".

Bloomberg's Selina Wang and Giles Turner reported that Musk and Son failed to reach an agreement over the structure of the company, citing sources.

Mr Musk has feuded publicly with regulators, critics, short sellers and reporters, and some analysts suggested that less transparency would be welcomed by Musk.

Musk, his brother Kimbal and director Steve Jurvetson were not included in the statement from members Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch.

China's Tencent Holdings Ltd, which took a 5 percent stake in Tesla a year ago, could also be a possible partner.

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