Shares of the company grew by 7%, and on the stock exchanges stopped trading – all after one tweet.
The US Securities and Exchange Commission sent a request to Tesla with a request to explain the tweets of Elon Musk. The regulator had questions because of the CEO’s statements that he was ready to buy back shares and make the company private.
According to the inquiry, the commission is wondering why Musk announced his intention to buy shares on Twitter and reported a specific amount ($ 420 per share). As a rule, such information is disclosed only in official documents. In addition, the regulator wants to check whether the CEO of the company followed the rules for protecting investors from financial losses.
The Securities Commission sometimes allows companies to advertise in social networks, but these accounts must be known to all investors. CNBC, citing sources, specified that the commission doubts that Musk has the funds to buy out Tesla’s shares. With the proposed price of one share, the company will cost $ 71 billion.
On August 7, Musk wrote a tweet about the intention to make Tesla a private company, having bought its shares. After that, the securities of the manufacturer of electric vehicles rose sharply by 7% in a few minutes. Then, the exchanges suspended trading in the company’s shares.