Don’t expect the feds to get less interested in Tesla just because it has decided to stay public. “I think the SEC’s interest in Tesla has been heightened, so they’ll be kept under close watch,” says Stephen Diamond, who studies securities law and corporate governance at the Santa Clara University School of Law.
In fact, the episode’s conclusion might get the regulators even more interested in pursuing Musk, or Tesla. “The regulators aren’t really impressed by the ‘JK’ defense,” says Peter Haveles Jr., a partner at the law firm Pepper Hamilton who represents financial institutions in enforcement actions. “There were two weeks of volatility in that stock. Because of the impact on the market, they’re not going to let go of this.”
‘Enforcement 40’ for 2020
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