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Report: Tesla Faces Criminal Fraud Investigation
The U.S. Dept. of Justice has opened a probe into possible criminal fraud by Tesla Inc. regarding last month’s statement by CEO Elon Musk that he had secured funding to take the company private, sources tell Bloomberg News.
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The U.S. Dept. of Justice has opened a probe into possible criminal fraud by Tesla Inc. regarding last month’s statement by CEO Elon Musk that he had secured funding to take the company private, sources tell Bloomberg News.
The investigation is being conducted by the U.S. attorney’s office in northern California, according to the report. The probe, which is in the preliminary stage, could take months and may or may not result in charges.
A separate civil investigation by the U.S. Securities and Exchange Commission also is underway. Bloomberg’s sources say that probe began before Musk’s comment about privatization.
The SEC investigation has been focused on Musk’s optimistic production and sales forecasts, according to Bloomberg. The news service’s sources note that those statements also could become part of the Justice Dept.’s investigation.
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