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Elon Musk, co-founder and chief executive officer of Tesla Inc.
The SEC has served Tesla with a subpoena after CEO Elon Musk tweeted that he was considering taking the company private and that he had the necessary funding lined up, according to a report by the New York Times published Wednesday.
Earlier reports said the agency had intensified scrutiny of the automaker after the controversial tweet. A subpoena would be one of the first steps in a formal inquiry.
Shares of Tesla were down 3 percent in afternoon trading, though moved only a fraction of 1 percent following the New York Times update.
Musk publicly floated the possibility of taking the company private in a tweet that sent shares fluctuating and company leadership scrambling. His claim that he had the “funding secured” came under particular scrutiny, as it may have violated an SEC rule that essentially stipulates public statements made by company executives must be true.
Musk explained earlier this week that the Saudi Arabian sovereign wealth fund had expressed interest in taking Tesla private.
Fox Business Network’s Charles Gasparino reported the SEC subpoena earlier Wednesday on Twitter, adding to Tesla’s losses for the day.
This story is developing. Please check back for updates.
