Tesla to be Investigated by US Justice Department Over Elon Musk Tweets
OREANDA-NEWS The US Department of Justice has launched an investigation into the statements of the head of Tesla Elon Musk on the possibility of redemption of its shares and withdrawal from the exchange. This information was reported by Bloomberg, citing on other sources.
As noted, the criminal investigation was launched in parallel with the civil process of the securities and exchange Commission, which checks the same statements of the Mask made in Twitter. The regulator wants to know whether the head of Tesla had reason to declare plans to buy the company and the availability of appropriate funding for this, as well as to understand why such important information was distributed to them through Twitter.
Musk wrote on Twitter that he is going to buy Tesla at a price of $420 per share in August, 7. Thus he added that "financing is provided". 17 days after the scandalous statement, Musk abandoned these plans.
In accordance with US law, companies and their top managers have no right to give false information regarding significant corporate events. Musk faces problems if regulators find out that these statements were made by him in order to push the price of Tesla shares to rise.
A few days later, the US media, citing sources, reported that the US financial regulator, the securities and exchange Commission (SEC) began checking the statements of Elon Musk. Then, the number of shareholders of Tesla filed for Elon Musk to court: the plaintiffs claim to have suffered losses due to his statements.
Now we are talking about a criminal investigation. It is still at an early stage, Bloomberg notes. As with the securities Commission audit, it can take several months.
So far, neither Tesla nor the US Department of justice does not comment on the report of Bloomberg about the beginning of a criminal investigation.
18 September, Tesla stock trades on the NASDAQ stock exchange fell by 5.5%. This happened after Bloomberg reported that the US Department of justice has launched a criminal investigation in connection with public statements by Elon Musk about the possible transformation of Tesla into a private company.