Tesla drops on SEC subpoena over Musk go-private plan

SEC reportedly subpoenas Tesla over Musk’s tweets

SEC reportedly subpoenas Tesla over Musk’s tweets

America's financial watchdog has sent a writ to Tesla regarding chief executive Elon Musk's plan to take the company private.

Musk stunned Wall Street last week when he said on Twitter that he meant to take Tesla private at $420 per share, and added that funding was secured. There are also four lawsuits filed againts Tesla and Musk for misleading investors. He is ready to offer those interested in selling their Tesla stock $420 per share, while Tesla employees will remain shareholders of the carmaker.

Both Tesla and the SEC have declined to comment about the investigation.

Mr Musk tweeted on Monday that he was working with Goldman Sachs and private equity firm Silver Lake.

Musk himself sought to justify the tweet in a lengthy blog post on Monday, stating that Saudi sovereign the Public Investment Fund (PIF), which has an estimated $250bn of assets, had expressed support for a buyout deal after building a 5 per cent stake.

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The concern is whether Musk indeed had "funding secured" for a private takeover bid as his Tweet said, and how secure that funding may have been.

Analysts estimated the deal would require up to US$50 billion.

Investors viewed the news as confirming a tweet from Elon Musk on Tuesday about hiring Goldman.

Tesla sued Tripp in June, accusing him of hacking the company and transferring secret information to third parties.

Earlier this month, Tripp He denies Tesla's claim that he's a hacker, and says the company intimidated and harassed him after he was sacked.

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"Any foreign investment in Tesla would at least notionally be of interest to CFIUS", Joseph Falcone, a partner at Herbert Smith Freehills in NY, told Bloomberg. The stock was down 3 percent at $337.21 at 1 p.m.

Gene Munster, a managing partner at the venture-capital firm Loup Ventures, echoed that point in an interview with CNBC.

Meanwhile, it looks like Tesla is moving along with plans to go private.

Latham and Watkins LLP has been retained by the committee as its legal counsel.

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