SEC subpoenas Tesla after CEO Elon Musk drops bombshell about buyout plans

SEC subpoenas Tesla after CEO Elon Musk drops bombshell about buyout plans

Shares of Tesla fell on Wednesday (Aug 15) following reports U.S. securities regulators have subpoenaed the electric auto manufacturer's Chief Executive Elon Musk over his statements about taking the company private.

Members of the Tesla board apparently had no idea Musk was contemplating taking the company private, and have since formed their own committee to look into the option. "While, we forecast H2 Model 3 production of 123k units, following our trip, we believe our estimate could be 4 to 7% too low", wrote the analyst in the research report.

The subpoena from the Securities and Exchange Commission demands information from each of Tesla's nine directors.

A follow-up blog post on Monday indicated that the funding would be coming from the Saudi Arabian wealth fund.

They have erased all their gains following Musk's tweet. Tesla's shares were last down 1.9% at $341.00 on Wednesday.

More news: 5 reasons PSU will be better than Ohio State in 2018
More news: Nvidia Reports Huge Decline In GPU Sales for Cryptocurrency Mining
More news: USA says more sanctions await if Turkey does not free pastor

TechCrunch has reached out to Tesla for comment on the tweeted images.

Martin Tripp, who Tesla fired after accusing him of industrial sabotage, has spent the better part of the past month waging a campaign against the company.

The "Saudi sovereign fund has more than enough capital needed to execute on such a transaction", he suggested.

Bloomberg cited lawyers as stating even before the new law passed on Monday a major investment in Tesla by Saudi Arabia would have drawn scrutiny.

The current currency volatility in emerging markets and the British pound are also under the microscope - a boon for United Kingdom expats sending cash back to the United Kingdom, as Sudesh Giriyan, chief operating officer on the UAE-based worldwide remittances company Xpress Money later explains. There are also four lawsuits filed againts Tesla and Musk for misleading investors. Goldman Sachs is taking steps to be added as a financial advisor, and private equity firm Silver Lake is helping out with the transition, according to the New York Times.

Related Articles

  • Australian teen sparks FBI action after hacking Apple

    Australian teen sparks FBI action after hacking Apple

    The teen, who can not be named for legal reasons, reportedly committed the hacks because "he was such a fan of the company". The judge on the case has postponed sentencing until next month due to the complex nature of the matter.
    Return to test team for Ben Stokes after brawl not yet decided

    Return to test team for Ben Stokes after brawl not yet decided

    England first named an unchanged squad for the Trent Bridge Test, but kept the door ajar for Stokes pending court proceedings. "He's just desperate to get back playing cricket, make that his main focus", Root said of the all-rounder.
    Rhea makes match play at US Amateur

    Rhea makes match play at US Amateur

    The New Jersey product got off to a rough start on Tuesday, making a double bogey on the par-4 first hole. A Hillier birdie on the 360m par-four 15th sealed the deal and they shook hands on the 16th green.
  • The Rangers turned an extremely rare and very confusing triple play

    The Rangers turned an extremely rare and very confusing triple play

    Profar tagged the bag to force out the runner from second, and then tagged the runner on third base for the second out. He fired the ball to second baseman Rougned Odor to force the runner from first base and complete the triple play.
    Italian bridge company under fire as rescuers toil for third day

    Italian bridge company under fire as rescuers toil for third day

    Capello was at the midpoint of the bridge, he recounted Friday, when "everything, the world, came down". His vehicle plunged nose first, then stopped with a crash, air bags releasing all around him.
    Interim information minister departs for Vajpayee’s funeral

    Interim information minister departs for Vajpayee’s funeral

    The former prime minister was accorded a state funeral with thousands of people joining his last journey. Dr Mufti Mukarram Ahmed termed the demise of Mr Vajpayee a great loss.
  • Djokovic rallies to defeat Mannarino in Cincinnati third round

    Djokovic rallies to defeat Mannarino in Cincinnati third round

    Halep returned to the court and took control, running off four straight games for a 4-3 lead when rain arrived. To continue, Djokovic will have to knock out the defending champion Grigor Dimitrov tomorrow.

    Trump vows to yank security clearance for DOJ's Bruce Ohr

    Richard Burr said Thursday that Brennan is purporting to know - as fact - that the Trump campaign colluded with a foreign power. The only question remaining is whether the collusion amounts to a "constituted criminally liable conspiracy", Brennan wrote.
    Diablo 3 is coming to the Nintendo Switch

    Diablo 3 is coming to the Nintendo Switch

    Following multiple rumors and teasers, Nintendo confirms that Diablo III is officially coming to Nintendo Switch . It also sounds like existing Diablo players will have some things to be excited about.
  • Max Lomas dead: Man who found Bobbi Kristina Brown's body dies

    Max Lomas dead: Man who found Bobbi Kristina Brown's body dies

    Lomas' death comes almost four years after he found Brown unconscious in her Georgia home, from an apparent overdose. Brown's death mirrored her mother Whitney Houston's , 48, who died in her bathtub following an overdose in 2012.
    Garbine Muguruza suffers surprise exit as defending champion in Cincinnati

    Garbine Muguruza suffers surprise exit as defending champion in Cincinnati

    Fourth seed Angelique Kerber also had a hard outing, having to battle back to outlast Anastasia Pavlyuchenkova 4-6, 7-5, 6-4. Halep and Tomljanovic will complete their clash on Thursday, with the victor to face Ashleigh Barty later in the day.
    It's a pain being me, says Elon Musk after tough year

    It's a pain being me, says Elon Musk after tough year

    But the one that's caused a recent firestorm among investors - about taking Tesla private , was posted in the middle of the day. Reports say government regulators have subpoenaed Tesla as they dig deeper into his disclosure of the potential buyout.