Elon Musk and Tesla Subpoenaed by The SEC Over Tweet

SEC reportedly subpoenas Tesla over Musk’s tweets

Modal Trigger Elon Musk Getty Images for SXSW

According to The Guardian, sources told Fox Business Network (later backed up by The New York Times and Wall Street Journal) that the SEC is "formally investigating" Musk's tweets after his claim he had "secured" funding to take the business private at $420 per share.

On Tuesday, Musk tweeted that Tesla had hired investment advisors from Goldman Sachs and Silver Lake Capital to help facilitate the buyout.

The PIF has many claims on its resources and $250bn in assets, over 50% of which are tied up in large Saudi companies whose stocks could be hard to sell en masse, according to Reuters, in addition to substantial commitments to other technology companies or investments, including $45bn in Japan's Vision Fund, Softbank, $3.5bn in Uber, the $1bn into Virgin Group's space ventures, and another $20bn committed to an infrastructure investment fund planned with Blackstone.

Nearly a week later, Musk said his confidence was based on conversations with Saudi Arabia's Public Investment Fund, which first expressed interest in helping take the company private in early 2017.

They have erased all their gains following Musk's tweet. Goldman Sachs confirmed to CNN on Wednesday that it is working with Tesla.

Representatives of Tesla and the SEC declined to comment.

Despite the Saudi Fund having over $250 billion in assets, enough to purchase Tesla, numerous fund's assets are not liquid and readily available cash is limited.

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Bloomberg cited lawyers as stating even before the new law passed on Monday a major investment in Tesla by Saudi Arabia would have drawn scrutiny.

As said, Musk tried to clarify his position earlier this week, by detailing in a very structured post on Tesla's blog what he meant by his written remarks.

The current currency volatility in emerging markets and the British pound are also under the microscope - a boon for United Kingdom expats sending cash back to the United Kingdom, as Sudesh Giriyan, chief operating officer on the UAE-based worldwide remittances company Xpress Money later explains.

That tweet may have violated United States securities law if he misled investors.

Musk tweeted late night on August 13, he was working with Goldman Sachs and private equity firm Silver Lake as financial advisers.

Teslas' board of directors is also understood to have sought legal advice and will retain their independent financial adviser to assess any potential Musk plan.

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