Tesla’s battle with the Securities and Exchange Commission could be the company’s biggest crisis in almost a decade. And it all started with a tweet.
“Am considering taking Tesla private at $420,” Musk wrote on August 7. “Funding secured.”
Tesla shares soared. But it quickly became apparent that Musk didn’t actually have a commitment from anyone to fund a buyout—at least not in writing. That caught the SEC’s attention. The SEC quickly began investigating Musk’s tweets for possible violation of securities laws, which prohibit manipulating markets by publishing inaccurate information.