The SEC of the United States Securities has been silently and orderly scrutinizing Tesla Incorporation from months. Musk then tweeted which forced the Securities & Election Commission to change the approach of the investigation, which dropped severe pressure on regulators. The SEC laws are not that public and it wants to work in this way only until they come across any illegal practice. However, something has happened different with Tesla that became the most important inquiry in the tenure of Chairman Clayton. A Law Professor, James Cox said SEC is going through a large pressure. SEC has not yet confirmed the investigation with Tesla, and a spokeswoman named Judith Burns refused to speak about this.
Musk still has not been accused of any falsework and it may take so many years for regulators to prove the cases of violation. Many signs are showing the progress of the SEC. After the start of new inquiry, the lawyers of enforcement divisions possibly will reach near the company’s attorneys in order to discuss about the documents and interviews. While investigating Tesla, the SEC has demanded data by providing subpoenas within some days after the Musk’s Tweet, possibly declining the investigative timeline. The NY Times published that the officials from the agency are planning to meet Elon Musk and Directors’ of Tesla by this week.
SEC always expects a criticism from lawmakers and investors when it is unable to take cases over different investigations, which successfully generate heavy dose by their headlines. Although, such concerns does not cause agency employees to sue the executives. The current examination has focused on the issue of Tesla’s misleading pronouncements made on sales targets and manufacturing goals. The announcement made by Musk have been deeply investigated by the investors