Elon Musk handed writ over Tesla sale

AMERICA’S financial watchdog has sent a writ to Tesla regarding chief executive Elon Musk’s plan to take the company private.

The Securities and Exchange Commission (SEC) investigation relates to Musk’s claim on Twitter that funding was ‘secured’ for a buyout, sources told Fox Business. The tweet may have violated US securities law if it turns out to be untrue, lawyers have said. Tesla has been sent a subpoena, which typically indicates the SEC has opened a formal investigation.

It comes after Musk defended his decision to make the buyout plans public on social media, claiming it was so that smaller investors would get the same information as larger ones.

Lawsuits separately filed against the billionaire allege he was deliberately trying to hurt short-sellers betting Tesla shares would fall, as its share price jumped after his comments. Tesla and the SEC declined to comment.