News

Tesla Faces Justice Department Investigation Over Musk's Tweets

SMS
Tesla Faces Justice Department Investigation Over Musk's Tweets
In August, Elon Musk tweeted he was thinking about taking Tesla private at $420 per share.
SHOW TRANSCRIPT

The Justice Department is investigating if comments by Tesla CEO Elon Musk about taking his company private were illegal.

In August, Musk tweeted he was thinking about taking Tesla private at a price of $420 per share and that he had secured funding for a possible deal. After that announcement, the company's stock price increased nearly nine percent.

But weeks later Musk abandoned the plan after he said shareholders urged him not to go through with it.   

A Tesla spokesperson says the company is cooperating with the DOJ's voluntary request for documents and that it believes "the matter should be quickly resolved." 

The Securities and Exchange Commission is also reportedly investigating Tesla over Musk's tweets about taking the company private. 

Additional reporting from Newsy affiliate CNN.