Tesla faces US criminal investigation over Musk comments

Shares tumble after DoJ launches investigation into ‘funding secured’ tweet

Tesla is under investigation by the US Department of Justice following chief executive Elon Musk’s claim last month that he had secured funding to take the company private, according to a person briefed on the matter.

The criminal probe into Tesla is running alongside a previously reported civil investigation by the Securities and Exchange Commission. Bloomberg first reported the justice department's investigation.

Representatives for Tesla and Mr Musk did not immediately return a request for comment, nor did spokespeople for the justice department and the US Attorney’s office for the northern district of California

Shares in Tesla gave up a gain of as much as 2.7 per cent to trade 5 per cent lower at $280.08 in late-morning trading in New York on the news. – Copyright The Financial Times Limited 2018