Tesla Says It Will Cooperate with DOJ Inquiry

*By Carlo Versano* Shares of Tesla dropped Tuesday on news the Department of Justice had launched a criminal investigation into Elon Musk's now-infamous tweet about taking the company private. The probe is on top of an SEC inquiry and raises the stakes for Tesla and its mercurial chief executive, said Mark Spiegel, a managing member of Stanphyl Capital and a vocal Tesla short-seller. "There's never just one cockroach," he said Tuesday in an interview on Cheddar. In a statement to Cheddar confirming the investigation, a company spokesman said, “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." The company's latest problems began when Musk tweeted in early August he had secured funding from a Saudi Arabian investment fund to take the company private at $420 a share. He ultimately admitted that statement was premature, and a series of other missteps by the CEO sent shares down as much as 33 percent from recent highs. After a seemingly-rare sandal-free stretch, the stock was actually up 12 percent last week, but Tuesday's news ended that run. Spiegel said Tesla's problems are "coming to a head" and he expects Musk will not remain CEO for much longer, especially now that federal investigators are snooping around in the company's affairs. Worsening matters for Tesla, competition in the luxury electric car space is just now accelerating; high-end models are in the works at Audi, Jaguar, Mercedes, and Porsche. "The only thing that's been running this stock has been hype," Spiegel said. For full interview [click here](https://cheddar.com/videos/the-ultimate-bear-case-for-tesla).

More In Business

Drones are Altering Farming and Growing Food Forever

When one thinks of agriculture, it brings up thoughts of tractors, yet unmanned drones have found one of their newest homes in agriculture.

Why Aren’t There More IPOs? Blame Fed Chair Powell (And Those Rates)

After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.

With An Increasing Demand In Mental Health Services, This CEO Wants To Use Tech To Change the Therapy Game

With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.

You Can Actually Lose Money on Real Estate (Even in This Market)

Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.

This Region Has the U.S. Beat When it Comes to Fighting Inflation

While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.

Housing Market Reports Are Here: April Insights and Economic Impact

April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.

Load More