Elon Musk Subpoenaed by SEC for Tweets

By William Vogeler, Esq. on August 16, 2018 | Last updated on March 21, 2019

Does Elon Musk really have anything to worry about since being subpoenaed by the Securities and Exchange Commission?

After all, he has dominated doing everything from cars to solar power to spacecraft to tunnels. Maybe the submarine didn't work out, but that's business.

But then his net worth hit an all-time high after tweeting he was "considering taking Tesla private." And that's why the SEC wants to talk to him.

The Billion Dollar Question

Like many billionaires, Musk stakes his wealth on stock in his company. A week ago, his net worth at $339-per-share was roughly $21 billion.

But after tweeting that he might take his car company public at $420 per share, the stock shot up. Seven days later, he was worth $25.8 billion.

The SEC wants to know more. The agency has subpoenaed Musk and other members of Tesla's board of directors.

It doesn't mean Musk broke any laws, but that's why there are investigations. As The Money Monster said, "This is just business, and this is how business is done."

And the Answer Is

According to reports, some speculate that Musk planned to drive up the stock price with the announcement. If so, that would be fraud.

Investors say as much in lawsuits filed shortly after the ill-timed tweet. One says that Musk artificially inflated the stock and violated securities laws.

So yeah, Musk does have something to worry about.

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