The U.S. Securities and Exchange Commission has inquired with Tesla Inc. on whether CEO Elon Musk's tweets about taking the company private were truthful, The Wall Street Journal reported Aug. 8, citing anonymous sources.
The SEC has also inquired whether Tesla believes the announcement complies with investor protection rules, according to the report.
In addition, the regulator has asked why the disclosure was made on Twitter rather than in a regulatory filing, the Journal reported.
Tesla's board issued a statement the same day saying it is evaluating the possibility of taking the company private
On Aug. 7, the CEO posted a string of tweets regarding his interest in taking Tesla private at $420 a share, following reports that Saudi Arabia's sovereign wealth fund acquired about 3% to 5% of shares in the electric vehicle maker.
"Am considering taking Tesla private at $420. Funding secured," Musk said on Twitter.
Tesla did not immediately respond to S&P Global Market Intelligence's request for comment. An SEC spokesman declined to provide comment to the WSJ.