Tesla, Elon Musk face criminal investigation of go-private tweets

The US Department of Justice launched the investigation after Musk stunned investors in August, tweeting that he had "raised money" to turn the electric vehicle maker into a private company.

Tesla confirmed that last month he "received a voluntary request for DOJ documents and cooperated to respond to them".

The company stated that it did not receive a subpoena, request for testimony or other official procedures. We respect the desire of the Department of Justice to obtain information on this subject and we believe that the matter will be settled quickly. "

The initiative, announced for the first time on Tuesday by Bloomberg News, comes as the US Securities and Exchange Commission is also investigating the company for possible civil violations.

Almost immediately after Musk's unexpected series of tweets suggesting that Tesla was about to move to a $ 420 private price per share, market watchers began to wonder whether the proposal was as strong as Musk's suggestion.

Shortly after, he defended his proposal, saying Saudi Arabia's sovereign wealth fund had indeed offered to finance the deal.

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But later in August, Musk dropped the bid, saying its financial advisers decided it was not a worthwhile effort and would have unintended consequences. Tesla will remain public.

Bloomberg said the investigation was centered on the possibility of "fraud". Federal authorities can crack down on companies or investors that intentionally mislead investors.

Firms convicted of fraud may be subject to sanctions, including significant financial penalties, while individuals may face fines, restrictions on future business activities, and jail time.

The criminal investigation complicates Tesla's problems during a crucial period, as it seeks to increase production of its model 3 electric car.

But the effects of driving Musk's trust in the private sector have contributed to a growing sense of sentiment about Tesla's prospects.

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The company's shares have lost more than a quarter of its value since its initial tweet. And Musk's judgment is questioned after the tweets and a subsequent appearance in a national podcast in which he apparently smoked marijuana.

Shares of Tesla fell 3.6% to 284.20 dollars, shortly after noon Tuesday.

The Department of Justice and the SEC refused to comment.