Tesla Inc (NASDAQ:TSLA) shares are trading higher Monday, paring losses after the stock recorded its worst week of 2023 last week on the back of weak earnings results. New reports suggest the U.S. Department of Justice (DOJ) is probing the EV maker.
What To Know: Last week, Tesla shares closed nearly 10% lower the day after reporting disappointing earnings and finished the week down about 15%. Tesla missed analyst estimates on both the top and bottom line and said it produced 430,488 vehicles in the third quarter, down from 479,700 in the second quarter. Deliveries were also down from the previous quarter.
Shares are bouncing back Monday, but new reports appear to be putting a lid on the recovery. According to Bloomberg, Tesla has received requests from the DOJ related to range advertising, personal benefits and personnel decisions.
Tesla reportedly warned that the investigation could have a “material adverse impact” on its business, depending on what the government chooses to pursue, but noted that no wrongdoing had been found as of now to its knowledge.
The report indicates the investigations are centered around perks provided to CEO Elon Musk, advertised vehicle range and self-driving capabilities and potential wrongdoings related to how the company selects and treats certain employees.
See Also: Elon Musk Pledges ‘Larger Scale’ Ad Blitz After Tesla’s Q3 Setback — But Still Finding ‘What Works Best’
TSLA Price Action: Tesla shares were off the highs of the day, but still up 0.72% at $213.52 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Tesla.
