Tesla CEO Elon Musk May Find Himself In Trouble Over Tweet

posted by MA - 

The Wall Street Journal is reporting that government regulators have opened an inquiry into Tesla CEO Elon Musk's Tuesday tweet disclosing a proposed $72 billion buyout of the electric car maker.

The Journal reported that the Securities and Exchange Commission is asking whether a Musk tweet on the subject was factual. 

In that tweet, Musk announced that he had secured financing to buy Tesla's outstanding shares at $420 per share. The newspaper cited unidentified people familiar with the matter.  The SEC declined to comment on the report Wednesday. Tesla didn't immediately respond to a request for comment. 

The Journal reported regulators are also questioning whether the disclosure about the proposed buyout in a nine-word tweet fulfills Tesla's legal obligations as a publicly traded company.   

The eccentric Musk announced the bombshell move Tuesday on Twitter, writing that he had secured funding to buy Tesla Inc.'s shares at $420 each.  

Shares rose 11 percent Tuesday but fell slightly Wednesday to $377.96.

Photo Credit: Getty Images

Source: CNS

title

Content Goes Here