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Tesla 'to be probed by regulators' over privatisation plan | Tesla 'to be probed by regulators' over privatisation plan |
(35 minutes later) | |
Shares in Tesla have fallen 4% on reports that US regulators are seeking to question executives at the firm about its privatisation plans. | Shares in Tesla have fallen 4% on reports that US regulators are seeking to question executives at the firm about its privatisation plans. |
Fox News tweeted that the US Securities and Exchange Commission (SEC) had sent subpoenas to the electric carmaker and was "ramping up" its investigation. | Fox News tweeted that the US Securities and Exchange Commission (SEC) had sent subpoenas to the electric carmaker and was "ramping up" its investigation. |
Last week, boss Elon Musk said he was considering taking Tesla private, but some have questioned his intentions. | Last week, boss Elon Musk said he was considering taking Tesla private, but some have questioned his intentions. |
Both Tesla and the SEC declined to comment on the Fox report. | Both Tesla and the SEC declined to comment on the Fox report. |
On Tuesday, Tesla's board of directors said it had not received a formal proposal from Mr Musk. | |
This is despite the fact that the firm has created a special committee of three directors to evaluate any such proposal. | This is despite the fact that the firm has created a special committee of three directors to evaluate any such proposal. |
While US companies are allowed to make announcements via social media, typically they also make a simultaneous regulatory filing. | |
Mr Musk's tweet may have violated US securities law if it turns out to be untrue, lawyers said. | |
Mr Musk announced on Twitter on 7 August that he was considering taking Tesla private at $420 a share, and that "funding [is] secured". | |
On Monday, he said financing for the deal had been discussed with Saudi Arabia. | |
The colourful entrepreneur says he wants to de-list the struggling carmaker to take it out of the glare of Wall Street. | |
If the plan goes ahead, it will be the biggest deal of its kind, valuing the company at $70bn (£55bn). | |
However, his comments - which caused shares in Tesla to jump 11% before falling back - have landed him a lawsuit from unhappy investors. | |
Short-sellers, who bet on share price falls, allege he misled the market. | |
Mr Musk, who owns a fifth of the company, has complained previously about "negative propaganda" from short-sellers. | |
The plaintiff in the case, Kalman Isaacs, alleges the announcement was aimed at "completely decimating" short-sellers. | |
Mr Musk, who also founded satellite launching company SpaceX, is no stranger to controversy. | |
Only last month he was forced to apologise for insulting a British diver involved in rescuing a youth football team from a cave in northern Thailand. |