SEC’s Scrutiny of Tesla (NASDAQ:TSLA) and Elon Musk Expands
The US Securities and Exchange Commission has sent subpoenas to Tesla Inc (NASDAQ:TSLA) regarding CEO Elon Musk’s ‘420’ plan to take the company private and his statement that funding was “secured.”
The fledgling EV makers shares fell as much as 4% but cut their losses after Goldman Sachs Group Inc (NYSE:GS) said it was dropping equity coverage of Tesla because it is acting as a financial adviser on a matter related to the automaker.
The latest news extended the uncertainty for Tesla investors over the past week+, adding to uncertainty about the future course of the company and whether a deal can be done amid growing regulatory complications.
Tesla and the SEC declined to comment.
Musk stunned investors and sent Tesla’s shares soaring 11 percent when he tweeted early last week that he was considering taking Tesla private at 420/share and that he had secured funding for the potential deal.
The shares fell 2.6% to 338.69 Wednesday, below 341.99, their closing price the day before Mr. Musk Tweeted his plan to take Tesla private.
The Tesla CEO provided no details of his funding until Monday, when he said in a blog on Tesla’s website that he was in discussions with Saudi Arabia’s sovereign wealth fund and other potential backers but that financing was not yet nailed down. Official of Saudi’s PIF have said it is not interested.
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Neutral (0.13)||Neutral (0.06)||Neutral (0.12)||Neutral (0.21)|