Tesla Confirms DoJ Investigation, Cooperating Fully

Update: Tesla has confirmed that it has received a voluntary request for information from the DoJ, but not a subpoena. Further, Tesla confirms that that is cooperating with DoJ’s request and hopes to resolve the request quickly.

Investors don’t seem to reassured…

*  *  *

Having shrugged off Audi’s e-tron launch, TSLA stock is tumbling after reports that the company is to face a US criminal probe over CEO Elon Musk’s statements.

Bloomberg reports that Tesla 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. The criminal probe is running alongside a previously reported civil inquiry by securities regulators.

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.

The investigation by the U.S. attorney’s office in the Northern District of California follows a subpoena issued by the Securities and Exchange Commission seeking information from the maker of electric cars about Musk’s plans to go private, which he has since abandoned.

The reaction in the stock price was swift…plunging 6%.

The stock price is catching back down to the bond price once again.

SEC enforcement attorneys in the San Francisco office were already investigating Tesla before Musk sent his tweet on taking the company private, Bloomberg reported Aug. 9. The existing probe focuses on whether Tesla had issued misleading pronouncements on manufacturing goals and sales targets, according to two people familiar with the matter.

Related Post

Youtube Now Decides What Is News We are all now subject to news the way Youtube sees it. The mainstream media is now labeled news in their eyes. The same MSM that is pressing forward ...
Yemen’s Navy Captures French Vessel Laden with For... HODEIDA, YEMEN — Yemen’s Navy, loyal to the Houthi government, captured a French naval vessel, the M/Y Jehol ll, off of the coast of Hodeidah on Satur...
Yemen Hits Saudi Warship After Saudi Strikes on Fi... SANAA, YEMEN — Yemen’s navy targeted a Saudi warship off Jizan on Saudi Arabia’s southwestern coast on Saturday, in retaliation for Saudi-led coalitio...
Yale Law Prof Encourages People To "Hide Immi... Authored by Grace Gottschling via Campus Reform, A Yale University law professor encouraged people to “hide” illegal immigrants from ICE, but says ...
"World’s Biggest Public Toilet" St... It is perhaps poetic justice that not long after Starbucks became one of the world's biggest virtue signalers, when the company decided it would becom...
Woman who flipped Trump the bird thinks she’... The female cyclist who flipped off President Trump’s motorcade last year will run for a local office in Northern Virginia in a bid to capitalize on th...
Woman Who Confronted Jeff Flake Crying To Be A Vic... We all have seen the video. Two women hold the elevator with Jeff Flake standing in it. They are obviously sounding distraught and complaining of bein...
Woman Shoots Carjacker In Face In Texas- Kids In C... A woman in Texas wasn't having it when it came to carjacking her car with her kids inside. She reached for her gun in the glove compartment and shot h...