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Report: Feds investigating whether Musk’s buyout tweet broke the law

Ars Technica
Report: Feds investigating whether Musk’s buyout tweet broke the law

The Securities and Exchange Commission is investigating whether Tesla CEO Elon Musk broke federal law on Tuesday when he tweeted about plans to take Tesla private at a price of $420 per share, The Wall Street Journal is reporting. "Am considering taking Tesla private at $420," Musk tweeted on Tuesday. "Funding secured." US law makes it a crime to "spread false or misleading information about a company" with the intent of manipulating its stock price, according to the SEC. Musk's tweet certainly moved markets. Within minutes, the stock price rose from around $355 to nearly $370. It rose further later that day as Musk provided additional details about the plan. The stock ended Tuesday just under