Hyperdrive
Tesla Is Facing U.S. Criminal Probe Over Elon Musk Statements
- Company got document request and is cooperating: statement
- Inquiry started after CEO claimed he had funding to go private
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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.
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.