Fox Business News reported on Wednesday that the SEC office in San Francisco, California, sent subpoenas to Tesla regarding its privatization plans and to determine whether Musk intentionally misled investors.
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Last week, Musk claimed via Twitter that could take the California-based company private at a price of $420 per share, adding that the funding for such a move has already been secured.
11 August 2018, 10:40 GMT
The report said if Musk's funding disclosure was inaccurate, which appears to be the case, it would create a new round of legal issues for the 47-year-old billionaire.
According to Fox Business News, Tesla and the SEC declined to comment on the investigation.
Tesla's stock was down by more than 11 points as of 2 p.m. EST on Wednesday.
