New York – The U.S. Securities and Exchange Commission has sent subpoenas to Tesla Inc regarding Chief Executive Elon Musk’s plans to take the company private and his statement that funding was “secured,” Fox Business Network tweeted on Wednesday, citing sources.
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Subpoenas typically indicate the SEC has opened a formal investigation into a matter. The electric car maker’s shares fell 4 percent to $333.33.
Tesla and the SEC declined to comment.
Musk said on Twitter early last week he was considering taking Tesla private at $420 per share.
Musk’s tweet may have violated U.S. securities law if it transpires to be untrue, lawyers said.