Tesla Finds Itself Under Investigation By the Justice Department

[William Maley]

We have to wonder if Tesla CEO Elon Musk regrets posting this tweet as the Justice Department has opened an investigation into the company.

Bloomberg has learned from two sources that federal prosecutors opened a fraud investigation into the company after Musk's tweet sent shares soaring. This follows an inquiry by Securities and Exchange Commission into whether or not Tesla had issued "misleading pronouncements on manufacturing goals and sales targets."

The investigation is in the early stages according to a source and its unclear how big of a scope the investigation could take. Prosecutors could look into other statements by Musk concerning Tesla's overall health and the circumstances surrounding Dave Morton, Tesla's former chief accounting officer.

“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,” Tesla said in a statement today.

Source: Bloomberg

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[G. David Felt]

Is this the Image Tesla wants their CEO to give on doing interviews be it news or podcasts? 

[riviera74]

If Elon were smart, he would either resign from Tesla or sell it off to a larger automaker.  There is never any good reason for any CEO to try and short squeeze any short sellers of their corporate stock.  None.

[A Horse With No Name]

When Tesla collapses, the fall is going to be huge.

[Drew Dowdell]

12 minutes ago, A Horse With No Name said:

When Tesla collapses, the fall is going to be huge.

someone will buy them... the brand name has more cachet than many legacy brands. 

[ocnblu]

2 hours ago, Drew Dowdell said:

someone will buy them... the brand name has more cachet than many legacy brands. 

It is vapor, son

[Drew Dowdell]

1 hour ago, ocnblu said:

It is vapor, son

I'll take $13 billion worth of vapor thanks.

Ford Market Cap - $38b

Tesla Market Cap - $51b

[riviera74]

Who is more likely to survive as a going concern in 2030?  Tesla will not make it that far.

[Drew Dowdell]

21 minutes ago, riviera74 said:

Who is more likely to survive as a going concern in 2030?  Tesla will not make it that far.

Given Ford's debt issues... possibly neither. 

[A Horse With No Name]

14 hours ago, Drew Dowdell said:

I'll take $13 billion worth of vapor thanks.

Ford Market Cap - $38b

Tesla Market Cap - $51b

Which shows how irrational the stock market is.

13 hours ago, Drew Dowdell said:

Given Ford's debt issues... possibly neither. 

The happiest thing I have read all week. Given the way I am feeling about Ford right now....shutter the plants.

13 hours ago, riviera74 said:

Who is more likely to survive as a going concern in 2030?  Tesla will not make it that far.

Sadly, no....probably bought by the Chinese who will appreciate the technology.

[G. David Felt]

18 minutes ago, A Horse With No Name said:

Which shows how irrational the stock market is.

The happiest thing I have read all week. Given the way I am feeling about Ford right now....shutter the plants.

Sadly, no....probably bought by the Chinese who will appreciate the technology.

Think Chinese owned FORD for the Truck / SUV line only, they will dump everything else to build and import in their own car crap. 

[A Horse With No Name]

27 minutes ago, dfelt said:

Think Chinese owned FORD for the Truck / SUV line only, they will dump everything else to build and import in their own car crap. 

A match made in heaven...two groups that truly deserve each other. Except that Fords Chinese sales are in the tank. Even people who used Ox carts for centuries and still travel mostly by bicycle have their standards, mind you.

Shutter the plants. All of them.  If we are talking post mid 1970's Ford...there is no such thing as a good blue oval.

[ccap41]

On 9/18/2018 at 7:57 PM, dfelt said:

Is this the Image Tesla wants their CEO to give on doing interviews be it news or podcasts? 

I bet you didn't watch the podcast, did you? 

Picture taken and spread by Ford, GM, and FCA or their fanboys. 

[A Horse With No Name]

Why we care about the recreational weed usage of a CEO is beyond me.

[G. David Felt]

2 hours ago, ccap41 said:

I bet you didn't watch the podcast, did you? 

Picture taken and spread by Ford, GM, and FCA or their fanboys. 

The point being missed is that image is everything and while I live in a state that Weed is legal and I do not care if you want to smoke it, do drugs whatever, your life, welcome to flush it down the drain and do not expect me to support you for your poor choices.

Point being is if you Google or Bing Musk, this image comes up over and over. Is this the image you want your CEO to be projecting?

I understand where this image came from in the podcast, but a leader needs to be thinking of the image they project beyond personal choice. He represents $51 Billion investment by the shareholders.

To me, IMHO, This is a Leadership FAIL of the picture!

[ccap41]

And my point was that picture was taken 100% out of context by people who don't like him or his company. Just like politics, somebody can be slandered with one poor picture taken at an awkward timing. 

If you watched it, that is absolutely the worst possible picture that could have been taken. He literally took one hit. He didn't just sit back and light it up and look like a jackass. People who wanted him to look bad, made him look bad. 

[G. David Felt]

34 minutes ago, ccap41 said:

And my point was that picture was taken 100% out of context by people who don't like him or his company. Just like politics, somebody can be slandered with one poor picture taken at an awkward timing. 

If you watched it, that is absolutely the worst possible picture that could have been taken. He literally took one hit. He didn't just sit back and light it up and look like a jackass. People who wanted him to look bad, made him look bad. 

Yes, I understand that, but to my point as the leader of a $51 billion worth company, he has to think about how this can be used to slander him or the company and hold himself to a higher standard. After all he is the CEO and Chairman of the company. The investors expect more from him.

[balthazar]

As opposed to -say- GM or FCA or toyota, 'Tesla' is 'Musk' and visa versa. I suspect a huge portion of the stock price/investment is because of Musk the person. In that vein, I tend to agree with dfelt; portraying an image of composure & professionalism is just 'playing it safe' WRT future investments, which the company so desperately needs. Musk, as it is, is missing a few crucial filters that, for a while, can be played off as 'eccentricity' or perhaps even 'mad genius', but toe the edge too frequently and he courts a turn of good will.

[ccap41]

47 minutes ago, dfelt said:

Yes, I understand that, but to my point as the leader of a $51 billion worth company, he has to think about how this can be used to slander him or the company and hold himself to a higher standard. After all he is the CEO and Chairman of the company. The investors expect more from him.

Would the same picture been taken had he drank a beer? Both are legal. 

[Robert Hall]

3 hours ago, ccap41 said:

Would the same picture been taken had he drank a beer? Both are legal. 

Beer is legal in most of the US, though, weed only in a few states (and still not legal federally).    Given the levels of stress he probably deals with running 3 companies and working 150hrs/week I could understand taking something to relax.  I don't know he does it, would think he'd have had a heart attack by now...

Edited September 26, 2018 by Cubical-aka-Moltar

[G. David Felt]

4 hours ago, ccap41 said:

Would the same picture been taken had he drank a beer? Both are legal. 

Beer is Legal, Pot is NOT by the federal gov and only a hand full of states have legalized it. The image by parents / investors that they expect is a higher bar for someone in this position.

48 minutes ago, Cubical-aka-Moltar said:

Beer is legal in most of the US, though, weed only in a few states (and still not legal federally).    Given the levels of stress he probably deals with running 3 companies and working 150hrs/week I could understand taking something to relax.  I don't know he does it, would think he'd have had a heart attack by now...

Maybe he is a cyborg.  

[Robert Hall]

I do remember working at a couple of small companies that had pot at company parties and at one place the CEO had a bong in his office...but that was in Colorado nearly 20 years ago...Colorado is an interesting place...

Weird factoid, Elon Musk and I have the same birthday, but I'm a year older.  Also same birthday as John Cusack, John Elway..

Edited September 26, 2018 by Cubical-aka-Moltar

[G. David Felt]

6 minutes ago, Cubical-aka-Moltar said:

I do remember working at a couple of small companies that had pot at company parties and at one place the CEO had a bong in his office...but that was in Colorado nearly 20 years ago...Colorado is an interesting place...

Weird factoid, Elon Musk and I have the same birthday, but I'm a year older.  Also same birthday as John Cusack, John Elway..

Ever wonder what the difference is that allowed them to become a millionaire / billionaire compared to what we are? I do wonder how the dice fell to get them where they are. I do ponder what I did different at times. Interesting thinking.

[Robert Hall]

12 hours ago, dfelt said:

Ever wonder what the difference is that allowed them to become a millionaire / billionaire compared to what we are? I do wonder how the dice fell to get them where they are. I do ponder what I did different at times. Interesting thinking.

Motivation, stamina, being a dreamer with a practical side, maybe?  I've never been motivated strictly by money...and I know my physical and mental limits..I burn out from working too many hours...I can't do 60-90hr weeks like I could do when I was younger.. or the kind of single focus obsessive lifestyle I've experienced in PhD life or startups..

Edited September 26, 2018 by Cubical-aka-Moltar

[ccap41]

13 hours ago, Cubical-aka-Moltar said:

Beer is legal in most of the US, though, weed only in a few states (and still not legal federally).    Given the levels of stress he probably deals with running 3 companies and working 150hrs/week I could understand taking something to relax.  I don't know he does it, would think he'd have had a heart attack by now...

In the interview he said he's only smoked weed a few times. I think he worded it as "almost never". 

I don't know how he does it either.

I actually really enjoyed the interview because he really is just an insanely smart guy. You could tell he's a socially awkward person but he's a genius. His companies come about when a genius has money to follow through with their ideas. 

12 hours ago, dfelt said:

Beer is Legal, Pot is NOT by the federal gov and only a hand full of states have legalized it. The image by parents / investors that they expect is a higher bar for someone in this position.

Weed isn't federally legal but it is legal in the state that he was in so I don't see the issue with it. 

[Robert Hall]

Elon is never dull, always interesting to listen to...

[ccap41]

8 minutes ago, Cubical-aka-Moltar said:

Elon is never dull, always interesting to listen to...

This was actually the first thing of his I ever listened to. I was impressed but I could feel the awkwardness at times with his pauses and his "laugh". 

[Robert Hall]

12 minutes ago, ccap41 said:

This was actually the first thing of his I ever listened to. I was impressed but I could feel the awkwardness at times with his pauses and his "laugh". 

I liked the awkwardness..proof he is a human and not a cyborg.   

I think like too many startup founders, he takes on too much of the day-to-day operations and planning himself and doesn't delegate to experienced leaders enough.   Successful companies are not one-man operations.  Couple that with what appears to be ADHD and new-idea-every-minute thinking seems to work against him.

Edited September 26, 2018 by Cubical-aka-Moltar

[Drew Dowdell]

12 hours ago, dfelt said:

Beer is Legal, Pot is NOT by the federal gov and only a hand full of states have legalized it. The image by parents / investors that they expect is a higher bar for someone in this position.

Maybe he is a cyborg.  

pulllease!

[G. David Felt]

Just now, Drew Dowdell said:

pulllease!

Agree to disagree, I hear things like this all the time with the people around me at work and yes Washington is a legal place for pot but what people accept for themselves is very different than the bar placed on leadership.

[Drew Dowdell]

5 minutes ago, dfelt said:

Agree to disagree, I hear things like this all the time with the people around me at work and yes Washington is a legal place for pot but what people accept for themselves is very different than the bar placed on leadership.

It certainly didn't stop Dell from buying EMC and as I recall Dell had to change their drug testing policy because most of the EMC executives and employees couldn't pass it. 

[ccap41]

28 minutes ago, Cubical-aka-Moltar said:

I liked the awkwardness..proof he is a human and not a cyborg.   

I think like too many startup founders, he takes on too much of the day-to-day operations and planning himself and doesn't delegate to experienced leaders enough.   Successful companies are not one-man operations.  Couple that with what appears to be ADHD and new-idea-every-minute thinking seems to work against him.

He said about 75% of his work is engineering but I guess when you're putting in 100hr weeks that still leaves a lot of time to work in day-to-day operations. 

16 minutes ago, dfelt said:

Agree to disagree, I hear things like this all the time with the people around me at work and yes Washington is a legal place for pot but what people accept for themselves is very different than the bar placed on leadership.

Did you sell off your Tesla stock upon seeing that image? 

[G. David Felt]

1 hour ago, ccap41 said:

Did you sell off your Tesla stock upon seeing that image? 

That is one stock I have never owned or will. Way overvalued for my investing style.

[ocnblu]

I regularly judge this twit for other things.  Weed is not one.