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Tesla Criminal Probe Reportedly Opened Over Musk Tweet, Stock Tanks

Investigating Elon Musk’s post that claimed he had “funding secured” to take it private.

Moments after reports surfaced that Tesla faced a criminal probe by the U.S. Justice Department over founder Elon Musk’s Twitter claim that he had secured a backer to take the electric-car maker private, Tesla stocks took a nosedive, dropping nearly $15 a share in Nasdaq trading at noon in New York. This criminal investigation will take place alongside the civil investigation the company already faces. Bloomberg News cited two officials familiar with the matter who say federal prosecutors opened a fraud investigation last month, after Musk boldly declared that he had “funding secured” for privatization—a claim that quickly garnered significant doubt. In a statement, Tesla said it received a “voluntary request for documents from the DOJ” last month and the company has been “cooperative in responding to it.” It also noted that it has not received a “subpoena, a request for testimony, or any other formal process.”