>> Tesla stocks slipping on Wednesday, following a report the US Securities and Exchange Commission has sent subpoenas to Tesla, over CEO Elon Musk's plans to take the company private, and his statement that funding was, quote, secured. Fox Business Network tweeted the news, citing sources. Subpoenas typically indicate the SEC has opened a formal investigation into a matter.
Tesla and the SEC declined to comment. Musk stunned investors last week on Tuesday, when he dropped his Twitter bomb, saying he planned to take the company private at $420 a share. That helped push the shares up by 11% on the day. But Tesla has lost the gains since and has dropped further, as questions rise about whether Musk really has the funding needed to take the company private.
On Tuesday, Tesla said its board appointed a special committee, and Musk would need its approval to move ahead. Tesla and Musk are also facing a class action lawsuit from investors who claim they defrauded shareholders in a scheme to manipulate the electric car company's stock price.