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Musk, the CEO of Tesla might have invited trouble for himself with his tweet that hinted towards securing funds for Tesla and the subsequent hiking of prices. Tesla that is going through a crisis period might be privatized, going by Musk’s statement which has drawn the censure of the Securities and Exchange Commission of the US (SEC).

Musk might have violated the 14e-8 rule of the SEC which restricts all companies who trade publicly, to announce their projects of the partners are not in agreement with the plan. This is done to prevent a false rise in stock prices.  Adding to the controversy, Tesla has not issued any public statement to clarify doubts about where it might procure more than $71 billion from, which would help the company become privatized. Questions then arise about Musk’s intention behind his tweet which also can be considered a fraud, if he has intentionally done this to increase the stock price. This carries a lot of weight, as Musk might be held accountable for manipulating the market and may have to deal with criminal and civil charges.

Musk’s comments might offer some relaxation for Tesla as it might allow them to convert their debts to stock. If Tesla has confident investors, there is a good chance that shares might rise to the offering price that will be announced which should be $420 here. However, any slippage on the part of the investors might lock Tesla shares to $340.

Following Musk’s tweet, Tesla had to halt all trading for a short duration on Tuesday, closing at $370 per share. According to news from Wall Street, the SCA has already begun investigation behind the possible intent of Musk’s statement. Tesla has opposing companies who have gestured towards Musk’s comment not being as spontaneous as it seems.