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. The criminal probe is running alongside a previously reported civil inquiry by securities regulators.
All of good ole Elon’s tweeting work has come undone in spectacular fashion.
Last month the Tesla CEO said he had the funding to make the company private and would do so should its stock hit US$420.
The SEC launched an investigation into the CEO’s claims who quickly abandoned the privatisation efforts, which earned the company a very nice little price bump.
Today we learn the DOJ has commenced a criminal inquiry requesting documents from Tesla whom have complied. Shareholders, not particularly fond of the idea that their company is being investigated have jumped ship in droves, the stock dropping 4.4% in today’s trading alone.