Tesla Facing Criminal Investigation Over "Taking Private" Claims: Reports

(RTTNews) - Tesla Inc. (TSLA) is reportedly under investigation by the Justice Department over public statements made by the company and its Chief Executive Officer Elon Musk.

Bloomberg reports, citing two people familiar with the matter, federal prosecutors have opened a fraud investigation after Musk tweeted last month that he was contemplating taking Tesla private and had "funding secured" for the deal.

Tesla confirmed it has been contacted by the Justice Department, the report says.

The SEC is already investigating Tesla and Musk over whether he misled investors and violated federal securities laws with his public statements. While, SEC's investigation is civil in nature, the Justice Department inquiry could result in criminal charges.

"Last month, following Elon's announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it. We have not received a subpoena, a request for testimony, or any other formal process. We respect the DOJ's desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received," Tesla spokesman said.

In August, Musk tweeted that he is "considering" to take the luxury electric maker private at about $70 billion. Musk said he secured the funding from a Saudi wealth fund.

Meanwhile, Musk is also facing a lawsuit filed by Vernon Unsworth, the British diver Musk called a "pedo" in July. The lawsuit seeks $75,000 in compensation and an injunction against Musk to stop further allegations. The filing also seeks "punitive damages" as well as the compensation, "to punish him for his wrongdoing and deter him from repeating such heinous conduct".