The long week for Tesla is getting even longer as the company has now been subpoenaed by the Securities and Exchange Commission, according to multiple reports. First reported by the Fox Business Network and confirmed by The New York Times, federal regulators appear to be interested in Elon MuskR…
Tesla declined to comment for this article.
According to the Times, regulators were interested in Tesla even before Musk began his erratic tweeting. They were already questioning Tesla whistleblower Martin Tripp (according to the Times), who has claimed that the company knowingly manufactured batteries with punctured holes, which could impact hundreds of cars; misled the public about the number of Model 3s actually being produced by as much as 44 percent; and lowered vehicle specs so the company could use waste and scrap material in vehicles.
While Tripp’s allegations are explosive enough, they’re now being overshadowed by the current drama over Musk’s tweets, which sent the stock price of his company soaring.
While Tesla has now retained Goldman Sachs to arrange financing for a privatization, at the time of Musk’s tweets last week, no financing had been secured.
That could land the serial entrepreneur in a lot of hot water.
