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.

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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.

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