News

Tesla Faces US Criminal Probe Over Musk Statements

Order Reprints

September 19, 2018—Tesla Inc. is under investigation by the Justice Department over public statements made by the company and chief executive officer Elon Musk, according to two people familiar with the matter, reported Bloomberg.

The criminal probe is running alongside a previously reported civil inquiry by securities regulators, according to the report.

Federal prosecutors opened a fraud investigation after Musk tweeted last month that he was contemplating taking Tesla private and had “funding secured” for the deal, said the people, who were granted anonymity to discuss a confidential criminal probe. The tweet initially sent the company’s shares higher.

Tesla confirmed it has been contacted by the Justice Department.

“Last month, following Elon’s announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it,” the company said in a statement released Tuesday following Bloomberg’s report of the investigation. “We have not received a subpoena, a request for testimony, or any other formal process. We respect the DOJ’s desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received.”

According to Bloomberg, the criminal inquiry is in its early stages. Tesla shares dropped 3.4 percent on Tuesday and are down 8.5 percent this year.

Related Articles

Key Departures That Have Dismantled Tesla's Senior Leadership

Tesla to Modify Model 3 in July

Tesla DashCam Feature to Come in Version 9 Next Month

You must login or register in order to post a comment.