Tesla shares fall on reports of SEC subpoena

Shares of Tesla fell on Wednesday following reports US securities regulators have subpoenaed the electric car maker’s Chief Executive Elon Musk over his statements about taking the company private, reports AFP from New York.

Shares finished down 2.6 percent at $338.69 after news of the formal demand for information was published by Fox Business and The New York Times. Shares fell as much as 4.5 percent earlier in the session.

The development suggests the oversight by the US Securities and Exchange Commission—which was characterized in previous news articles as an inquiry—has “advanced to a more formal, serious stage,” said The Times, which cited a person familiar with the matter.

A subpoena “typically requires the approval of top SEC officials,” the newspaper added.

A Wall Street Journal story published after the stock market closed said the subpoena sought information from each of Tesla’s directors.

 

Tesla shares fall on reports of SEC subpoena

Shares of Tesla fell on Wednesday following reports US securities regulators have subpoenaed the electric car makers Chief Executive Elon Musk over his statements about taking the company private, reports AFP from New York. Shares finished down 2.6 percent at $338.69 after news of the formal demand for information was published by Fox Business and The New York Times. Shares fell as much as 4.5 percent earlier in the session. The development suggests the oversight by the US Securities and Exchange Commissionwhich was characterized in previous news articles as an inquiryhas advanced to a more formal, serious stage, said The Times, which cited a person familiar with the matter. A subpoena typically requires the approval of top SEC officials, the newspaper added. A Wall Street Journal story published after the stock market closed said the subpoena sought information from each of Teslas directors.