One of Tesla's biggest shareholders has claimed that the electric vehicle company could be worth far more than the $420 a share that Elon Musk, its founder, said he was prepared to offer in a tweet that rocked Wall Street on Tuesday.
Musk's tweet halted trading of the company's shares on Tuesday afternoon for 92 minutes, leaving Tesla investors in a frenzy.
Musk announced his plan on his personal Twitter account on Tuesday, and the U.S. Securities and Exchange Commission has asked Tesla about the facts of the matter, why it was disclosed on Twitter rather than in a regulatory filing and whether it believed investor-protection rules had been met, the Journal said. Tesla did not immediately return a request for comment. In his first tweet he said funding was secured but provided no details.
Compliance experts are still arguing about whether Musk could face official censure.
Earlier today, Elon Musk did what he does best and set the internet ablaze - this time, based on a tweet about potentially taking Tesla private again. A day earlier, shares rose more than 11% after Musk unexpectedly tweeted that he was exploring a move to take Tesla private at $420 per share. The statement did not address how the $420-per-share price was established.
Ultimately it will be up to the shareholders whether Tesla remains public or goes private, but the SEC is now curious about how Tuesday's events unfolded.
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Musk is CEO and chairman of Tesla.
It seems to have gotten the better of the billionaire who has tweeted that he's considering taking the company private.
There still are near-term execution risks around ramping up Model 3 production and the ability to generate cash, Jonas believes. This pushed the stock price up almost 11 percent to close the day at $379.57 (£293.33 / €327.25).
Two of the potential stumbling blocks to Musk's plan include the stock price premium not being enough to get the existing shareholders on board to support the sale and coming up short on the announced funding to complete the transition.
The most obvious equity partners for Mr Musk would be a sovereign wealth fund such as Saudi Arabia's Public Investment Fund (PIF), which sources said had taken a stake of just below 5 percent in Tesla, or a major technology investment fund such as SoftBank Group Corp's Vision Fund, bankers said.