‘Investigation of Market Manipulation by Elon Musk’

Experts expect the US stock market watchdog SEC to investigate Elon Musk. In a tweet, the billionaire announced that he wanted to get his company Tesla off the stock market. The financing would already be around, he claimed.

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Image via REUTERS

Not entirely surprising: the price of the share increased by 11 percent. The trading was temporarily halted in the share. It was thought that the Musk Twitter account might have been hacked. After an official confirmation — in a tweet directed at the staff — the trade was picked up again.

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An irresponsible action by Musk, says Paul Koster, director of the Vereniging van Effectenbezitters (Association of Securities Holders) against news channel BNR. He thinks that market manipulation is thought to be ‘rightly logical’. But according to the former board member of the AFM financial watchdog, there is a premature withdrawal of market manipulation.

According to Koster, this will be investigated by the American stock market watchdog. “ Musk will have to prove that he has the financing round. A tour around the big American banks shows that they know nothing at all.

The American news channel CNBC spoke with a former board member of supervisor SEC, Harvey Pitt. In that interview, Pitt cautiously said the words market manipulation and fraud. He spoke about this in general terms, but he said to assume that SEC is going to do research.

It is not the first time that Musk says he wants to get his company off the stock market. Last autumn he also called that. Even though Musk has already completed the investments, he will have to prove it. The Financial Times business newspaper recently reported on the basis of reliable sources that the Saudi state investment fund would have stepped into the American car manufacturer. The Saudis would have built up an interest of 3 to 5 percent. That would have made $ 2 billion available.

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Musk has been calling remarkable things lately. Less than a month ago, the Tesla boss made a slippage by making one of the drivers participating in the rescue of the cave boys in Thailand a pedophile.

He also barked out a few months ago stock market analysts who asked critical questions during a conference call about the disappointing results of Tesla. Musk spoke of ‘boring, idiotic questions’ and broke the connection.

Until recently, the wealthy founder of PayPal Payments, space company SpaceX and SolarCity, especially supporters who admire him for his visionary ideas, but the reputation of this wonderboy quickly begins to crumble.

The SEC would already have Elon Musk on the grain. According to Bloomberg, a whistleblower has approached the regulator because the car manufacturer has reported production figures for the Tesla Model 3 that are up to 44 percent higher than in reality.

The manufacturer of battery cars has been struggling with a cash flow problem for some time. Also, no profit has been made in the past fifteen years. In recent months even rumors circulated about a possible bankruptcy. Last week, Tesla reported a record loss for the second quarter.

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