Tesla is under investigation by the Justice Department, a company spokesperson confirmed Tuesday.
In a statement to The Washington Times, the Tesla spokesperson said the Justice Department reached out for documents after an August tweet by CEO Elon Musk about taking the high-tech car company private:
Am considering taking Tesla private at $420. Funding secured.— Elon Musk (@elonmusk) August 7, 2018
The tweet also launched a civil investigation from the Securities and Exchange Commission. The buyout fell through in just a few weeks, but that made the CEO and the company vulnerable to punishments from the SEC for misleading the investors.
The report comes on the heels of a bad stretch for Tesla.
The company’s stock tanked and fell at least 10 percent to $252.25 on Sept. 7 after the departures of two key company executives.
As of Tuesday afternoon, Tesla’s stock price had climbed back to $279, but had dropped 5 percent from the previous day.
Copyright © 2020 The Washington Times, LLC.