Bloomberg Businessweek

Why the SEC May Be Musk’s Best Frenemy

The Tesla CEO’s tweet puts the spotlight on regulators’ relationship with Silicon Valley

Elon Musk’s tweet about taking Tesla Inc. private has brought intense scrutiny, mostly of Musk, but also of U.S. securities regulators. The Securities and Exchange Commission would seem to have a strong case that Musk was at the very least being misleading when he tweeted on Aug. 7 that he’d “secured” financing for a privatization deal. He appeared to indicate he hadn’t closed a deal in a subsequent blog post. That could be a violation of securities laws.

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