Elon Musk/Tesla Served With Subpoena In Stock Manipulation Probe


It appears that the eccentric richest man in the world, Elon Musk, will cooperate with the subpoenas he received from U.S. Securities and Exchange Commission (SEC). The SEC just sent Musk’s company Tesla, Inc. its second subpoena requesting to see his go-private tweets.

Elan Musk’s title is Chief Executive of the electric vehicle manufacturer, and it appears that in 2018 he sent tweets referring to taking his company private.

The first SEC subpoena came last November regarding Musk’s tweets “on material information to be vetted.” This happened very shortly after the auto and rocket manufacturer queried his Twitter followers, according to Yahoo Finance:

‘[S]hould he should sell 10% of his Tesla stake to cover tax bills on stock options?’

In 2018, the manufacturer settled an SEC regulator lawsuit concerning his “go-private tweets.” The SEC let Tesla, Inc. attorneys “pre-approve tweets with material information about the company.”

Then in June, Musk went to court to appeal a judge’s decision to keep the 2018 SEC agreement in place. He wanted to end it.

Musk claimed his “funding secured” regarding Twitter tweet was “truthful.” And the automaker is also embroiled in a Twitter lawsuit. He offered the company $44 billion to buy it. Then, the Twitter stock dropped 20 points in the Stock Market, and the carmaker wanted out of the deal. As a result, Twitter is taking him to trial in October.

Reuters reported that Tesla was converting approximately 75 percent of it holdings” into currency:

s’Separately, Tesla said in the filing it has converted about 75% of its bitcoin holdings into fiat currency and has recorded an impairment charge of $170 million related to the asset.’

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The New York Times reported that the SEC was following Musk closely and questioned whether Musk “properly disclosed his investment in Twitter:”

‘The SEC has broadened its inquiry into whether Elon Musk properly disclosed his investment in Twitter and his intentions for the social media company. The agency said a tweet from Musk in May suggested he planned to abandon his deal to buy Twitter.’

Musk’s digital assets were valued at $222 million on June 30:

‘Tesla shares were up 1.5% at $829.11 before the bell on Monday. The stock has lost nearly 23% of its value this year until Friday’s close price.’

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SEC Chair Gary Gensler said, according to CNBC’S Squawk Box:

‘What we’ve proposed is a rule to bring some consistency and comparability to what’s already happening,” says SEC Chairman @GaryGensler on #ESG. “It’s bringing some consistency to that. We’re not a merit-based regulator. We are a disclosure-based authority.”‘

The company intends to cooperate with the SEC.

Featured image is a screenshot via YouTube.

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