Sure looks like the SEC is investigating Elon Musk's 'funding secured' tweet

18 August, 2018, 18:40 | Author: Eric Barnett
  • Elon Musk is being sued by two Tesla shareholders

The subpoena, from the Securities and Exchange Commission, comes days after regulators began inquiring about an August 7 Twitter post by Musk, in which he said he was considering converting Tesla to a private company.

Musk also said he does not believe he would need to raise the full $72 billion value placed on Tesla by his $420-a-share bid because he expects many existing shareholders - including himself with 20% of the company - to roll their shares into a private Tesla. Since then questions have arisen about both the seriousness of the claim (one that Musk has stuck to despite evidence to the contrary) and whether Musk was intentionally trying to juice Tesla's stock (thus thwarting short sellers).

They include images he says are of battery scrap, trailers containing battery waste, and documentation of punctured battery parts in Model 3 vehicles.

Reportedly, the San Francisco SEC office sent Bay Area-based Tesla subpoenas about privatizing the company.

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.

Elon Musk, CEO of Tesla Motors Inc., unveils the companyĆ­s newest products, Powerwall and Powerpack in Hawthorne, Calif., Thursday, April 30, 2015.

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


Musk had also tweeted on Monday that Goldman Sachs Group Inc. and Silver Lake would act as financial advisers, but neither had officially signed on at that point, said people familiar with the matter.

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

This source said Tesla's independent board members had hired law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP to help handle the SEC inquiry and other fiduciary duties with respect to a potential deal.

According to Bloomberg, the Saudi Fund disclosed in March that it hired Washington law firm Akin Gump Strauss Hauer & Feld LLP to lobby for approval of acquisitions in the US, with a focus on CFIUS (Committee on Foreign Investment in the U.S.).

Musk's tweet may have violated U.S. securities law if he misled investors.

Tesla's board of directors on Tuesday announced a special committee had been formed to study "proposals" to go private.

Recommended:

  • Ohio State Urban Meyer update

    Ohio State Urban Meyer update

    Smith's attorney, Brad Koffel, told Stadium that he had "no idea" about the photos and sex paraphernalia. Following deliberations with the board, and appropriate time for consideration, President Michael V.
    Overwatch On Nintendo Switch Is Feasible, But StarCraft 2 Isn't

    Overwatch On Nintendo Switch Is Feasible, But StarCraft 2 Isn't

    Unlike many Switch games, Diablo III will have cloud saves that you can transfer between consoles. Yes, [Overwatch on Switch] is feasible .
    OnePlus Finds First US Carrier Partner for Launch of OnePlus 6T

    OnePlus Finds First US Carrier Partner for Launch of OnePlus 6T

    The latest iteration of the OnePlus family brings us an all-new design on the outside, and more of what we already love on the ... The next OnePlus flagship smartphone will launch on T-Mobile here in the U.S.in addition to its normal global launch, CNET says.
  • Omarosa may have as many as 200 White House recordings

    Omarosa may have as many as 200 White House recordings

    Lara Trump has framed the recordings as the betrayal of a woman she considered a friend, someone she was trying to do a favor for. The most incredible thing in the Kelly tape was that Omarosa was willing and able to record something in the Situation Room.
    Trump vows to yank security clearance for DOJ's Bruce Ohr

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

    The president said he does not trust " many of those people on that list" and does not think they are "good people". Former US security officials yesterday issued scathing rebukes to Mr Trump for moving against Mr Brennan .
    Nvidia Gives Lackluster Outlook on Cratering Crypto Sales

    Nvidia Gives Lackluster Outlook on Cratering Crypto Sales

    The prospect of the new design coming later this year may be causing some to hold off on purchases of its predecessor. The results were pretty good overall, with strong demands for Nvidia products for AI and data center applications.
  • 6 more overdoses reported in New Haven, Conn.

    6 more overdoses reported in New Haven, Conn.

    Ernest Jones, an EMT for the New Haven Fire Department, described the day to the New Haven Register as a "domino effect". The mass overdose began Tuesday night and forced police to continue monitoring the Green late into Wednesday night.
    Pope condemns 'predator' priests amid damning abuse report

    Pope condemns 'predator' priests amid damning abuse report

    The report said more than 300 clergy committed the abuse over a period of decades, including at least 37 in the Allentown Diocese. On Wednesday, still not addressing the report of the investigation, the pope prayed for victims of a bridge collapse in Italy.
    JAILED PASTOR: US threatens more sanctions on Turkey

    JAILED PASTOR: US threatens more sanctions on Turkey

    Tensions between Turkey and the U.S. have been on the rise as Trump has pressed for the release of the pastor. Economists gave Albayrak's presentation a qualified welcome and the lira subsequently held firm.
  • B.C. government declares a state of emergency in wildfire response

    B.C. government declares a state of emergency in wildfire response

    More federal personnel and resources will be arriving in B.C.to assist with wildfire efforts in coming days, the government said. That includes more than 400 workers who have come here from other parts of Canada, Australia, Mexico, New Zealand.
    How these teams can unlock Bud Light Victory Fridges

    How these teams can unlock Bud Light Victory Fridges

    So, should the Browns win, the lock will release and drop the chain when given a signal. They are full of free, cold beer.
    Donald Trump under fire for comments about Aretha Franklin

    Donald Trump under fire for comments about Aretha Franklin

    Her voice was unique, her piano playing underrated - she was one of my favourite pianists", John said, in part. His tweet following the news of her passing was also criticized by Franklin fans for its insensitivity.


Popular

Amazon Said to Be Making Digital Video Recorder for Live TV
The retail giant's secretive Lab 126 research and development center in Silicon Valley is working on the project, it is believed. Amazon Echo relies on Microsoft's Bing search engine and Wikipedia, while Google Home uses the company's own Google Search.

Smoke from fire rises from rubble of collapsed Genoa bridge
Prosecutors say 10 to 20 people might still be unaccounted-for, so the death toll is expected to rise. "The vehicle protected me". Rescuer Stefano Zanut said there was a "triangle of survival" where rubble or beams form a protective cover.

Andreas Pereira: Going against Jose Mourinho worked out in the end
Pereira's selection comes just a week after he made his Premier League debut for Manchester United in a deep-lying midfield role.

Apple reassures customers after Australian media reports hack by teen
He also had access to authorized keys, the kind that grant log-in access to users and should be extremely secure. His defence lawyer said that he had become very well-known in the global hacking community.

Elon Musk Breaks Down During Interview
And while he says he's open to someone else taking over from him, Musk also reckons that there's no-one who could do any better. Musk to sleep but instead contributes to late-night Twitter sessions, according to a person familiar with the board's thinking.

Darmian staying at Manchester United, says Mourinho
Mourinho injected some positivism in his responses to the media and that should resonate well both with Pogba , but also the rest of the squad.

ESPN President: MNF Won't Show Anthem This Season
The network president added that the organization will cover events if they think they are "newsworthy". But the policy was later placed on hold after backlash.

Fox News Uses Photo of Patti LaBelle in Aretha Franklin Tribute
The explanation led to even more confusion, since the channel used LaBelle's shot from a 2014 concert at the White House, hosted by then-president Barack Obama .

Stormy Daniels a no-show on Celebrity Big Brother and Loose Women
However, just moments before she was due on-set of the daytime TV show, she again pulled out of the appearance last minute. Those fantastic celebs include Kirstie Alley , Bad Girls Club star Natalie Nunn , and "Human Ken Doll" Rodrigo Alves .

Oatmeal, breakfast foods contain unsafe amounts of weedkiller, report says
Some products were found to have no detectable glyphosate or low levels, but the vast majority of those tested did have some. Oats are the basis of many favorite children's snacks, including Cheerios and other baby finger-food cereals.