More information has now emerged on Mr. Musk’s tweet since our last post. After reviewing Regulation FD and Rule 10b-5, we had concluded that Mr. Musk’s should be fine as long as the funding was truly secured, meaning that there was a signed (i.e. irrevocable) financing commitment to back the statement “funding secured”. While […]
Tesla
Did Elon Musk breach U.S. Securities Laws?
Did Elon Musk breach Regulation FD or Rule 10b-5 by tweeting that he was “considering” taking Tesla private during market hours? Mr. Musk stunned the markets and caused a 10% surge in Tesla’s stock price (and a trading halt) when he announced that he was considering taking Tesla private, meaning delisting Tesla from the Nasdaq […]