Slashdot Mirror

← Back to Stories (view on slashdot.org)

SEC Sends Subpoena To Tesla In Probe Over Musk's Take-Private Tweets (bloomberg.com)

Posted by BeauHD on from the serious-business dept.

The U.S. Securities and Exchange Commission sent Tesla a subpoena regarding Elon Musk's effort to take the company private, "indicating the regulatory scrutiny of his statements have reached a more serious stage," reports Bloomberg. Last week, Musk tweeted he was considering taking Tesla off the market and had "funding secured" for the deal. From the report: Musk exposed himself to legal risk by tweeting Aug. 7 that he had the funding for a buyout. Almost a week later, the chief executive officer said the basis for his statement was conversations with Saudi Arabia's Public Investment Fund, which first expressed interest in helping take the company private in early 2017. Tesla's board has since clarified that it hasn't received a formal proposal from Musk, who's also chairman, nor has it concluded whether going private would be advisable or feasible. Tesla may face potential regulatory challenges beyond the SEC investigation. The company probably will need approval of U.S. national security officials if Saudi Arabia finances the effort to take the company private, and President Donald Trump's administration has been stepping up scrutiny of foreign investment in American technology.

4 of 273 comments (clear)

  1. Musk sent out pair of shorts to a short trader by JoeyRox · · Score: 5, Funny

    That trader should return the favor and send Musk a pair of handcuffs.

  2. In the age of Trump Tweets. . . by Idou · · Score: 5, Interesting

    This feels like a lifeguard going after kids for splashing. . . during a hurricane. . .

    However, I do agree with the Musk critics that say he should not be the CEO of a public company. . . that is why Tesla needs to go private.

    Let good engineers quietly build stuff (and occasionally vent on Twitter, without regulatory consequence) and the do-nothing CEO's of public companies continue do nothing and look good in the name of shareholder value.

    I just want to drive their cars. . . the rest just seems like a silly distraction.

    --
    Sdelat' Ameriku velikoy Snova!
    1. Re:In the age of Trump Tweets. . . by Idou · · Score: 5, Insightful

      Well, I think in the end, this is a cultural war between those in the wealth creation business (Elon Musk/Tesla) and those in the wealth transfer business (Wall Street). As far as Wall Street is concerned, the public CEO is there to serve them. When a public CEO does not act accordingly, the entire industry goes out for blood.

      I have had Wall Street types find out I own a Tesla and go into some kind of rant of why the company is doomed, that "everyone I talk to is shorting them", and all their cars catch on fire. That is not normal "car" talk. That is crazy "they faked the moon landings" type shit. It is like the entire industry is acting like some kind of cult because a public CEO had the gall to stand up to them.

      That is why I think Tesla should go private. Not because Elon Musk is crazy, but because Wall Street is. . .

      --
      Sdelat' Ameriku velikoy Snova!
  3. Re:Didn't I tell you? by Train0987 · · Score: 5, Informative

    Couple things:

    The SEC has their own subpoena powers. No judge necessary. Companies agree to comply as part of the process of going public.

    The SEC only has civil jurisdiction, not criminal. The only thing the SEC can do is levy fines and bar company officers from being officers. The DOJ (FBI) will have to get involved for indictments to happen.