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Goldman Says It's Advising on Tesla Days After Musk Buyout Tweet

18 August 2018

The maverick billionaire and CEO of Tesla tweeted last week that he was considering taking his company private - a move that has caught the attention of the US Securities and Exchange Commission.

Investors viewed the Goldman statement as confirming a tweet from Elon Musk on Monday about working with Goldman, even as the reported subpoenas indicated the SEC has opened a formal investigation into a matter.

That tweet may have violated U.S. securities law if he misled investors.

The subpoenas are meant to help the SEC determine whether or not Musk's tweets and blog posts "intentionally misled investors".

Tesla whistleblower Martin Tripp took to Twitter on Wednesday night, tweeting photos he alleges came from inside the company.

The SEC and Tesla declined to comment on the reports.

Apparently, the market isn't too pleased with the news about the Tesla subpoena, which is understandable.

The company followed up with a lengthy blog post from Musk about what it would take to make Tesla private instead of publicly traded.

They include images that he says show battery scrap, trailers containing battery waste, and documentation of punctured battery parts in Model 3 vehicles.

Tesla's board of directors has been scrambling to contain any potential damage caused by Musk's August 7 tweet.

It has become clear since then that neither Musk nor Tesla had actually lined up the necessary financing aside from having preliminary conversations with some investors.

Denholm, the first woman on Tesla's board, is chief operations officer of telecom firm Telstra and the former chief financial officer of network gear maker Juniper Networks.

According to the New York Times, the regulator validated those theories Wednesday.

Tesla's other board members include Musk; his brother Kimbal Musk; Twenty-First Century Fox's CEO James Murdoch; Antonio Gracias, founder of Valor Equity Partners; and Ira Ehrenpreis, founder of venture capital firm DBL Partners.

According to Business Insider (BI), although Japan's SoftBank was, according to Musk, one of several entities that had approached him about taking Tesla private, the focus has been on the PIF.

Latham and Watkins LLP has been retained by the committee as its legal counsel.

Goldman Says It's Advising on Tesla Days After Musk Buyout Tweet