Mashable Tech Editor Pete Pachal on the fallout from Tesla CEO Elon Musk's tweet about potentially taking the company private.
"I left the July 31st meeting (with the Saudi fund) with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving", Musk said.
The SEC is looking into whether Musk's initial announcement broke a rule preventing public companies from announcing such major financial plans if they don't intend to see them through, don't have financing secured, or are blatantly trying to manipulate the stock price.
That's according to the New York Times, which, citing people familiar with the chain of events that unfolded last week, reported Musk's tweets weren't given much thought ahead of time and were not vetted with the company's board.
Tesla founder Elon Musk has confirmed that he is closely working with Goldman Sachs and private-equity firm Silver Lake to take the electric carmaker private - a deal that would need almost $70 billion in funding.
PIF officials have said in the past that decisions at the sovereign wealth fund are made with care, emphasising corporate governance.
Mr Musk has said the offer is valued at $420 (£326) per share.
The board has given the committee authority to act on its behalf, including negotiating a deal to take Tesla private.
That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up yet.
It remains unclear if his definition of "secured" matches those of a reasonable shareholder, who may believe the statement indicated Musk had a written agreement, they said. Going private would remove Tesla from Wall Street scrutiny, eliminating the need to publicly disclose its earnings and - for Musk - having to explain himself to shareholders. At least two lawsuits seeking to become a class action also have been filed against Tesla, alleging Musk broke securities laws by making it sound like all the financing for the buyout had been lined up.