Report: Feds investigating whether Musk’s buyout tweet broke the law
The Securities and Exchange Commission is investigating whether Elon Musk broke federal law on Tuesday when he tweeted about plans to take Tesla private at a price of $420 per share, The Wall Street Journal is reporting.
“Am considering taking Tesla private at $420,” Musk tweeted on Tuesday. “Funding secured.”
US law makes it a crime to “spread false or misleading information about a company” with the intent of manipulating its stock price, according to the SEC.
Source: Ars Technica