Tesla CEO Elon Musk May Find Himself In Trouble Over Tweet

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

George Chamberlin

George Chamberlin

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