Business Extra Podcast: Musk's tweets put Tesla in the spotlight

Lloyd Doyle
August 18, 2018

On Wednesday, Charles Gasparino from Fox Business reported via Twitter that the SEC has formally requested information from Tesla regarding Musk's tweet stating "funding secured" for a buyback to go private.

Members of the Tesla board apparently had no idea Musk was contemplating taking the company private, and have since formed their own committee to look into the option. The company's stock is down almost 3% as of this writing.

The Twitter post by Musk, who has considered taking Tesla private in the past, was something of a flip remark, said several people familiar with the matter but not authorized to speak publicly about the episode.

They have erased all their gains following Musk's tweet.

Tesla, in comments to CNBC, said Tripp's claims are false and there have been no battery safety issues on the Model 3.

Goldman also announced Wednesday that it is removing its rating and price target on Tesla stock.

The serving of a subpoena indicates that the inquiry has moved onto a formal stage, which may take months to years finalize.

Despite the Saudi Fund having over $250 billion in assets, enough to purchase Tesla, numerous fund's assets are not liquid and readily available cash is limited. The tweet followed news that a Saudi investment fund had acquired a minority share in the business. What's more, the analyst said in a research note that was covered by and CNBC the capital expenditures needed to hit 7,000 to 8,000 vehicles each week appears to be within Tesla's reach.

More Money: Priced out of the market?

The 47-year old billionaire's tweet about secured funding may have violated US securities law if he misled investors.

Mr Musk tweeted on Monday that he was working with Goldman Sachs and private equity firm Silver Lake.

Other reports by Iphone Fresh

Discuss This Article