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Tesla and SpaceX leader Elon Musk on Monday at an event in Hawthorne, California (Chris Carlson / AP)
Drew Harwell
National Journalist of Technology covering Artificial Intelligence and Big Data
Devlin Barrett
Reporter focused on national security and law enforcement
Matt Zapotosky
A national security reporter covering the Department of Justice
The Justice Ministry is investigating Tesla over statements made by chief executive Elon Musk last month about privatization of the company, Tesla said Tuesday.
Last month, the department's investigators asked the company for documents regarding Musk's announcement and the company complied, said Tesla spokesman Dave Arnold.
Tesla had not "received a subpoena, asked for a testimony or any other official process," Arnold said. "We respect the DOJ's desire to obtain information on this and we believe that the issue should be quickly resolved as they review the information received."
The progress of the investigation is unclear and there is no guarantee that the investigation will lead to criminal prosecution or other enforcement action. But a person familiar with the investigation said it was a fraud investigation to determine whether Musk's statements were intended to mislead investors.
Justice Ministry spokeswoman Nicole Navas said the agency "generally does not confirm, deny or comment on the existence or absence of an investigation".
The electric car maker and its billionaire leader are also facing a Securities and Exchange Commission investigation and multiple shareholder lawsuits following the announcement of Musk, who tweeted he had "guaranteed funds" to close the transaction.
[Tesla suspends share-trading after Elon Musk tweets he wants to take the carmaker private]
The August 7 surprise announcement pushed Tesla's share price up by nearly 11%, consolidating its position as one of America's most valuable automakers. But 17 days later, despite increasing skepticism from shareholders and analysts, Musk announced that the proposal was dead.
Tesla investors are arguing in several ongoing court proceedings that the deal, in which Musk pledged to buy outstanding shares at a high price from investors, was a market manipulation or fraud.
Tesla shares fell by more than 4% Tuesday after the news, which Bloomberg reported for the first time. His stock is now trading 25% off the day of Musk's tweet.
The Justice Department's investigation could increase pressure on the company's board to establish new leadership or curb the chaos surrounding Musk, an eccentric billionaire with commercial interests in space travel. artificial intelligence and underground super-trains.
[Elon Musk sued by Thai-cave rescue volunteer he called a ‘child rapist’]
The news of the investigation comes a day after Vernon Unsworth, a cave explorer influencing the rescue of boys from a cave in Thailand this summer, sued Musk, alleging defamation. Musk accused Unsworth of being a pedophile after the British explorer, criticized by a mini-submarine, said it could be used for rescue.
The company also faces complaints from former employees, including Martin Tripp, who alleged that Musk had lied to investors about the company's production.
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