Tesla Discloses New SEC Investigations Into CEO’s Tweets

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Tesla($NASDAQ:TSLA) disclosed new SEC investigations into CEO Elon Musk’s tweets about taking the company private in 2018 on Monday. In its latest 10-Q filing, the automaker indicated it received yet another subpoena in June “seeking information on our governance processes around compliance with the SEC settlement” previously reached in the matter. The inquiry also requested information on model 3 production rates in relation to the take-private pronouncements. The new investigations could have a negative effect on Tesla’s market value and earnings in the long term. The company is already facing several challenges, including disappointing sales of its new Model 3 sedan and production delays. If the SEC investigations lead to additional fines or other penalties, it could further damage Tesla’s reputation and financial health.

Market Reaction

Tesla has disclosed that it is under investigation by the SEC for tweets made by CEO Elon Musk. Since the news of the investigation was released, Tesla’s stock has been mostly mixed. On Monday, the stock opened at $816.6 and closed at $805.3.

However, some analysts believe that the investigation could lead to positive outcomes for the company, as it could increase transparency and governance at Tesla.

VI Analysis

The company’s fundamentals reflect its long term potential, and the following analysis of Tesla is made simple by the VI app. According to the VI Risk Rating, Tesla is a high risk investment in terms of financial and business aspects. You may look at what are the business and financial areas presenting potential risks in our website.

Summary

Investing in Tesla can be a risky proposition. The company has been under investigation by the SEC for several months now, and the stock price has taken a hit as a result. The latest news is that Tesla has disclosed yet another SEC investigation, this time into CEO Elon Musk’s tweets. Tesla is a controversial company. Some investors believe in the vision of CEO Elon Musk and are willing to bet on the company’s long-term success. Others are more skeptical, given the company’s history of missing production targets and its current financial situation. Investors should do their own research before investing in Tesla. They should be aware of the risks involved, including the SEC investigations, and make sure they are comfortable with those risks before investing.