US SEC examining Musk's tweets on taking Tesla private

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If Musk can pull it off, he will have burnished his reputation as an eccentric visionary who has been compared to Tony Stark, the billionaire playboy depicted by actor Robert Downey Jr.in the "Iron Man" movies.

Regulators at the Securities and Exchange Commission have made inquiries about the truthfulness of Musk's tweet about funding, according to reports.

Former SEC Chairman Harvey Pitt went on CNBC Tuesday to say his tweets "might constitute fraud if any of the facts he disclosed are not true".

Tesla didn't respond to requests for comment Wednesday. Judith Burns, an SEC spokeswoman, declined to comment.

"Am considering taking Tesla private at $US420". The shares dropped on back-to-back days after having jumped 11 percent Tuesday, when Musk vowed that he had "funding secured" at a spectacular $82 billion valuation.

On August 8, 2018, Tesla's board issued a statement (Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch), "Last week, Elon opened a discussion with the board about taking the company private".

The Tesla board of directors plans to meet with financial advisors next week to explore Elon Musk's proposal to take the company private, CNBC reported Thursday. He added that the financing was "insured" but did not give details. Musk did not identify the buyout parties when he tweeted.

Musk has long battled publicly with short sellers of the stock. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. This was reported by Elon Musk in his twitter handle.

Prior to the tweet, shares closed Monday at $341.99.

Correction: This article has been revised to clarify that the Bloomberg report said the SEC had been gathering information on Tesla before Tuesday. He said that Tesla had not received such a notice, and that he had no expectation of raising new equity. Tesla lost another $717.5 million in its most recent quarter.

Some people took it as a joke, but most people believed him.

Some on Wall Street shared that view.

In a statement on Wednesday, Tesla's board said its discussion with Mr Musk "addressed the funding" for the deal, without offering more details.

Telling Musk, Tesla's founder and largest shareholder, to go his own way is an unusual move for any board - and suggests that their interests are separate. One was speculation about whether Musk was serious or just making a dumb weed joke (serious, it seems, based on this blog post on Tesla's website) and about how much cash he'd need to make it actually happen (likely $50 billion plus). And most of the perceived advantages of being a public company - higher profile, greater brand awareness, better access to capital - don't apply to Musk and Tesla.

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