Tesla Criminal Probe Into Musk Tweet Seen Opening Pandora’s Box -- Bloomberg

On related notes, see Only BMW Comes Close to China’s Electric-Vehicle Heavyweights (Bloomberg) and Here Come Tesla’s Challengers With All-Electric SUVs (WSJ)

"The “funding secured” tweet did in fact trip up bearish sellers when the company’s shares rallied more than 10 percent. Government investigators will be trying to determine whether there was any connection to that statement and his desire to hurt short sellers.

Once federal prosecutors begin looking into Musk’s comments, they may also examine other things, including why the company’s new chief accountant picked up and left after just a month on the job -- though he said at the time he had “no disagreements with Tesla’s leadership or its financial reporting.” Under securities fraud laws, prosecutors could go back five years and more if they find evidence of a conspiracy.

Very often what starts out as an investigation of one subject takes a completely different turn, said Michael Koenig, who prosecuted former Qwest CEO Joseph Nacchio for insider trading."

Tesla Criminal Probe Into Musk Tweet Seen Opening Pandora’s Box -- Bloomberg