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Tesla Is Facing US Criminal Probe Over Elon Musk Statements (bloomberg.com) 203

An anonymous reader quotes a report from Bloomberg: Tesla is under investigation by the Justice Department over public statements made by the company and Chief Executive Officer Elon Musk. The criminal probe is running alongside a previously reported civil inquiry by securities regulators. Federal prosecutors opened a fraud investigation after Musk tweeted last month that he was contemplating taking Tesla private and had "funding secured" for the deal. The tweet initially sent the company's shares higher. Tesla confirmed it has been contacted by the Justice Department. The investigation by the U.S. attorney's office in the Northern District of California follows a subpoena issued by the Securities and Exchange Commission seeking information from the electric-car maker about Musk's plans to go private, which he has since abandoned. Tesla said in a statement following Bloomberg's report: "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."
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Tesla Is Facing US Criminal Probe Over Elon Musk Statements

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  • by mykepredko ( 40154 ) on Tuesday September 18, 2018 @05:32PM (#57337674) Homepage

    It's a simple rule. Many people follow it and avoid being investigated by the DOJ.

    • by Anonymous Coward on Tuesday September 18, 2018 @05:40PM (#57337728)

      It's a simple rule. Many people follow it and avoid being investigated by the DOJ.

      I think Musk should counter by citing blatant racism, as he is indeed an African-American.

    • by Anonymous Coward on Tuesday September 18, 2018 @05:41PM (#57337736)

      Actually if he were smoking marijuana he'd probably be able to de-stress and get needed rest, get better control of his emotions. It would be a strong net positive in his case compared to his stress-meth lashing out on Twitter.

    • by swm ( 171547 )
      don't make announcements while bi-polar

      FTFY

      • More importantly, don't make announcements that are false. He said he had funding secured. He didn't, and he knew he didn't.

        Martha Stewart went to prison for less than this.

        • Martha Stewart went to prison for less than this.

          It really changed her too. I hear she mostly hangs out with rappers now.

        • by rtb61 ( 674572 )

          Funding secured is such a wobbly statement, it really depends upon the definition of the word secured outside of legal documents. That they are pursuing the case, tends to indicate they were, cough, cough, paid to. The name and connections of the lead instigator would be interesting to have. Generally speaking, if someone publicly sought clarification of the comment and based the clarification around much more legally demanding requirements, then he would be in trouble but empty statements are empty until l

  • sad... (Score:2, Insightful)

    by zlives ( 2009072 )

    the promise of clean(er) vehicle emissions does not need him fucking it up. there has been enough hate on battery tech without this douche making it worse.
    why doesn't the board just fire him or something... just focus on the business.

    • by Anonymous Coward

      It doesn't matter if his company lives are fails electric vehicle technology is here to stay. Existed way before Tesla and it will exist long after. how many steam powered cars are you all driving these days?

      • It doesn't matter if his company lives are fails electric vehicle technology is here to stay. Existed way before Tesla and it will exist long after. how many steam powered cars are you all driving these days?

        Burn coal
        Create steam
        Turn turbine
        Generate electricity
        Charge electric vehicle
        Drive to work
        Shitpost on slashdot with retardisms like "how many steam powered cars are you all driving these days?"

        • by Jeremi ( 14640 )

          Burn coal
          [...]
          Shitpost on slashdot with retardisms

          Surely, pretending that coal is the only way electricity can be made, is also a form of shitposting? Deliberately ignoring the entire other half of the equation (the societal shift away from fossil fuels as an energy source, Trump notwithstanding) in order to "win" an argument on Slashdot definitely qualifies as a retardism (as does using words like "retardism", of which I am hereby twice guilty)

    • by Anonymous Coward

      I don't think even he can destroy what he's already contributed towards the cleaner vehicle emissions industry. He proved out what most people thought ridiculous.

      He survived the market crash while critics said electric cars:
      -can never compete on range
      -can never compete on cost
      -can never compete on performance
      -can never compete with filling at a gas station
      -can never be cool

      Just look at the other largely "sad" contributions to the electric car industry if you think he can simply be replaced as easily as you

      • It is pretty easy to compete if you don't have to make a profit. Ford turns a nice profit and a nice 6.5% dividend on top of it. Tesla loses thousands (nearly $18,000) on every vehicle it sells. EVs really don't compete on range (most modern cars can go 350+ miles on a single tank), on cost (well, only if they give them away at a loss AND get a fat Government subsidy added in), and most can't compete on performance (yes, there is "ludicrous" mode, but you will permanently lower the capacity of your car [electrek.co] w
  • by PopeRatzo ( 965947 ) on Tuesday September 18, 2018 @05:50PM (#57337808) Journal

    I'm not one to say I told you so, but everybody made fun of me a few weeks ago when I said that Elon was going to face some serious consequences for his phony tweet about taking Tesla public.

    https://youtu.be/lTXoA-QTbJw [youtu.be]

    • by Anonymous Coward

      That's okay, I'm keeping a list of all the predictions you make to throw in your face when they turn out to be wrong.

    • Re: (Score:2, Funny)

      by h33t l4x0r ( 4107715 )
      He can just say it was a joke. It always works for POTUS.
      • He can just say it was a joke. It always works for POTUS.

        Considering the events we are watching unfold before the world, I can say definitively that it doesn't always work for TWEETUS.

    • I'm not one to say I told you so, but everybody made fun of me a few weeks ago when I said that Elon was going to face some serious consequences for his phony tweet about taking Tesla public.

      https://youtu.be/lTXoA-QTbJw [youtu.be]

      You also thought that Hillary would win, and that Trump was racist. Your "predictions" are no better than coin tossing.

      • You also thought that Hillary would win, and that Trump was racist.

        No, and yes. Your memory isn't so good.

  • Tesla at this point is exceeding production goals, and still has strong demand - stronger still now that Google is infecting many automobiles [slashdot.org].

    Remember at the time there was a huge block purchase by an investor in Saudi Arabia, there are probably a number of investors very interested in taking Tesla private given the future they have not just with cars, but with many things solar and battery related...

    • BS. There are multiple SEC investigations going on, including ones around their production numbers. You can always tell a Tesla fanboy: they treat the Tesla press releases as some sort of gospel.
    • by Anonymous Coward

      Because they already admitted they did not have funding and are no longer pursuing the transaction?

    • by Anonymous Coward

      I applaud Teslas accomplishments and the main one is showing EVs can work with todays battery technology. But moving forward I think Chevy is rolling out the EV properly with the Bolt. It doesnt have funky styling and it operates just like a regular car. More or less. The majority going forward want a $25k EV that doesnâ(TM)t make a statement but just gets them to work and home. Tesla has to do this. The high end EV market will be dominated by Mercedes and Porsche in the near future.

  • A rich person has to accept repercussions for his behavior? This isn't Trump's America!
    • Whoa, whoa, whoa! You're getting ahead of yourself here. This is just an investigation. No one is accepting any repercussions yet - if at all.
  • World war III will start with a tweet.

    (yes I know the sandwich thing is a myth)

    • World war III will start with a tweet.

      (yes I know the sandwich thing is a myth)

      The Archduke Franz Ferdinand was feeling a bit peckish, realized he had forgotten to pack something to eat, so he ordered the chauffeur to retrace the parade route back to get a sandwich....

      The Franco Prussian war really did start with a tweet.

    • World war III will start with a tweet.

      They wish. That would really take the focus off the Mueller investigation.

  • Comment removed based on user account deletion
  • I am curious if a movie were to be made about Musk, how would it be portrayed? i.e. the movie about Howard Hughes "The Aviator" and would it then be called "The Rocketman?" I find it interesting some of the parallels (though not many) however you got to admit Tesla has affected the car market and SpaceX the space market.
  • by Anonymous Coward

    How is Musk able to keep a clearance and do business with the gov't after blatantly and publicly violating federal law? US is a lawless country for anyone with a billion stashed. I see no reason average people should obey any federal law, given what we've seen over the last 15 years.

    • Obeying the law and having a clearance are only vaguely related. A clearance is essentially a certification of the Governments ability to trust a person to keep a secret. Drug use poses a threat to a clearance in a few ways. First, when a person is high they might be more readily influenced to share information they shouldn't. Second, because drug use is against Federal Law, and generally prohibited as a term of employment it can be used for blackmail material. Third, there is the liability concern when an

    • Well, the first reason would be that whole "innocent until proven guilty" thing...

  • he should have taken it private earlier.

  • by 140Mandak262Jamuna ( 970587 ) on Tuesday September 18, 2018 @09:53PM (#57339190) Journal
    It is unfortunate Musk gets the company into trouble.

    He was prescient enough to see a Moore's law for batteries, with a 7 year period for power density and price. His prediction is coming exactly. He was charismatic enough to persuade enough VCs to fund a company that can make a no-compromise EV, not some compliance vehicle. But the company is stable now. The production hell has been debugged out. Now they are going through the delivery hell, and are talking about parts and repairs etc like a regular car company. At this point Elon is hurting more than helping Tesla.

    Tesla Model 3 is the fifth best selling car by volume and the number one car by revenue in August.

    • It is unfortunate Musk gets the company into trouble.

      But has he? What is currently underway is a probe. Not a prosecution, not a judgement, but a probe. It's like you getting yourself in trouble because I decide to sue you for the comment you just made. It could happen, but let's face it you won't be in trouble as a result.

You know, the difference between this company and the Titanic is that the Titanic had paying customers.

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