(Reuters) – The U.S. Securities and Exchange Commission has sent subpoenas to Tesla Inc (TSLA.O) regarding Chief Executive Elon Musk’s plans to take the company private and his statement that funding was “secured,” Fox Business Network tweeted here on Wednesday, citing sources.
FILE PHOTO: A Tesla sales and service center is shown in Costa Mesa, California, U.S., June 28, 2018. REUTERS/Mike Blake/File Photo
Subpoenas typically indicate the SEC has opened a formal investigation into a matter. The electric car maker’s shares fell 4 percent to $333.33.
Tesla and the SEC declined to comment.
Musk said on Twitter early last week he was considering taking Tesla private at $420 per share.
Musk’s tweet may have violated U.S. securities law if it transpires to be untrue, lawyers said.
Reporting by Sonam Rai in Bengaluru; Editing by Anil D’Silva and Nick Zieminski