Tesla shares have plunged after the USA government department launched a criminal investigation into the company. It could be an inquiry into that one tweet, or it could be an inquiry into statements regarding the company's health, or the resignation of Tesla's CFO Dave Morton, some at Bloomberg have guessed.
Tesla shares fell 5.3 per cent to $279.13 in midday trading. In a letter, Musk said that institutional investors couldn't follow a private bid but doubled-down on the claim that Tesla had money for the move. The US Department of Justice has not issued a statement on the matter as well.
Last August, Musk tweeted that Unsworth was a "pedo guy."
Tesla is under investigation after its chief executive, Elon Musk, announced that he was considering taking the company private.
A Justice Department spokeswoman said the agency "generally does not confirm, deny or otherwise comment on the existence or non-existence of an investigation". Sure, Musk's going-private tweet certainly caught the DOJ's attention, but the breadth and depth of the probe is pretty much unknown.
It comes as Tesla endures "production hell" and "delivery logistics hell" in its electric auto business, Musk said, and a British cave diver files a lawsuit against him for defamation, after Musk accused him of pedophilia to millions of followers on Twitter. Abraham Simmons, a spokesman for the US attorney's office also declined to comment at this time.
Elon Musk "speaks loosely", but his conduct probably doesn't rise to the criminal level.
Musk later said he abandoned the effort three weeks after his initial tweet.
Musk is facing legal trouble because his "funding secured" tweet could be construed as fraud that potentially misled investors.
Tesla had not "received a subpoena, a request for testimony, or any other formal process", Arnold said.
Tesla's ability to deliver on production targets has weighed on its stock in the past, and the company has been working to iron out bumps after failing to meet production targets for its Model 3 sedans.