Auto

Tesla faces criminal probe over CEO Elon Musk's statements

Updated : September 19, 2018 06:33 AM IST

Federal prosecutors opened a fraud investigation over Musk's tweets in early August that he was contemplating taking Tesla private and had "funding secured" for the deal

Musk stunned investors last month with tweets saying he wanted to take the electric car company private in a buyout valued at $72 billion, before backing off.

Tesla faces criminal probe over CEO Elon Musk's statements

Tesla Inc is under investigation by the US Department of Justice over public statements made by the company and its Chief Executive Elon Musk, Bloomberg reported on Tuesday, citing two people familiar with the matter.

Tesla did not immediately respond to a request for comment, while DoJ declined to comment.

Federal prosecutors opened a fraud investigation over Musk's tweets in early August that he was contemplating taking Tesla private and had "funding secured" for the deal, the report said.

Musk stunned investors last month with tweets saying he wanted to take the electric car company private in a buyout valued at $72 billion, before backing off.

The billionaire' s behavior has raised concerns about his corporate leadership, with several Wall Street analysts and some investors urging Tesla to appoint a strong second-in-command. Musk has admitted to severe stress from running Tesla.

The U.S. Securities and Exchange Commission has already opened an inquiry into Musk's tweets.

Shares of the company fell 6.2 percent to $276.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more