The Securities and Exchange Commission of the United States was interested in tweets Mask on the repayment of Tesla's shares and began an investigation

The other day the public was agitated by the news that Tesla could leave the exchange and become a private company. As is known, after the founder and head of Tesla, Ilon Mask, announced plans for the repurchase of shares, the company's securities rose sharply more than 10%, which is why the exchanges had to stop trading. Of course, the situation attracted the attention of the regulator.

The Wall Street Journal, referring to its own informants, claims that the Securities and Exchange Commission of the United States (SEC) intends to conduct an investigation to find out if Ilon Mask violated his tweets rules for disclosing this kind of information.

It is reported that the SEC has already sent Tesla a relevant request, requesting documents confirming the seriousness of Mask's intentions regarding the repurchase of shares. In addition, the commission is interested in why the head of Tesla decided to report this via Twitter, instead of using the standard form specified in the law on securities. And also, did Mask harm the actions of the shareholders in their actions.

As is known in the US judicial system, case law operates. And such precedent has already been – this is the precedent of Reed Hastings, which took place five years ago. Then the SEC decided that the messages with business information published by the CEO of Netflix on his Facebook page do not violate the law, as investors knew in advance about his actions. Actually, this is the precedent of the SEC that will be used to assess the legitimacy of the tweets Mask.

It's unlikely that Mask did not discuss this with the board of directors of the company, since the situation is clearly not a joke, and he is a judicious and successful entrepreneur. Most of all, the SEC is interested in whether there were financial plans for redemption of shares at the time of the public statement. Otherwise, such statements may be regarded as fraud, and this is a criminal offense. However, this, again, is unlikely, especially since Musk himself said that there is money for ransom.

Source: Wall Street Journal

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