DOJ Reportedly Opening Investigation Into Tesla After Elon Musk Floats Company Privatization

Daniel Fowler
September 19, 2018

However, we're still not 100% on whether the SEC investigation is linked to the Department of Justice one - either way, Musk and his company Tesla are under the spotlight right now and things are heating up fast.

Two days after the Aug 28 tweet, Mr Musk emailed a BuzzFeed News reporter, suggesting that the reporter investigate Mr Unsworth and "stop defending child rapists", according to the lawsuit, which is 65 pages with exhibits.

The company said it had received a voluntary request for documents and is cooperating.

Now, it appears that the Justice Department is looking into the case as well.

According to reports, Musk is under scrutiny for tweeting in August that he planned to take the electric auto company private.

Tesla has confirmed to Bloomberg that it has been contacted by the Justice Department. By August 22, Tesla's advisers had a list of possible investors that would provide funding for the company's privatization at $420 per share.

"We have not received a subpoena, a request for testimony, or any other formal process, " Tesla's statement said.

Tesla has had to deal with significant turnover in its executive ranks, including this month's controversial departure of its chief accounting officer.

He said he became a target for Musk after cavers rejected Musk's offer of a mini-submarine created by his rocket company SpaceX to rescue the soccer team which was freed from the cave on July 10 after an 18-day ordeal.

Two Pinoys hurt, 32 others stranded on Hong Kong bridge
The weather system was also the most powerful typhoon to hit Hong Kong since 1979, packing winds of 195 kilometres per hour. Hundreds of rescuers, including police and soldiers were still scrambling Monday to search for the missing.

The news sent shares of Tesla lower during Tuesday's trading session.

Tesla biggest institutional investor Baillie Gifford said last week it was questioned by the SEC about Musk's plans to take the electric carmaker private.

While Musk's initial tweet claimed he had "funding secured" to buy out existing shareholders, he soon admitted he didn't actually have anything in writing.

Musk later accused Unsworth of moving to Thailand to be with a bride who was about 12 years old.

Federal prosecutors have opened a fraud investigation, Bloomberg reported

Elon Musk told a Tesla customer late Sunday that the all-electric carmaker is suffering from severe delivery logistics problems, an acknowledgment that follows a string of troubles for Musk and his company.

Short-sellers, who bet against the stock appreciating, complained that Musk's announcement was done to manipulate the stock price and cost them money.

After news of the potential criminal investigation surfaced, Tesla stock tumbled 3.4 percent.

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