Tesla shares tumble as it faces criminal probe into Musk tweet

EMBATTLED Tesla and its chief executive Elon Musk are under criminal investigation in the US over his tweets about taking the electric car maker private.

Tesla confirmed last night it has been asked for documents by the US Department of Justice (DoJ). Shares fell again, dropping more than 5pc at one point.

Billionaire Musk, 47, caused turmoil at the firm last month when he announced on Twitter that he was considering taking Tesla private in a deal worth £54bn. He even insisted he had ‘funding secured’.

Shares rose before falling back amid doubts over the plan and Musk eventually abandoned the deal. The US’s financial watchdog is investigating as the tweet may have broken US securities laws.

The intervention of the DoJ marks a major escalation of Musk’s problems. He has been battling to ramp up production and is being sued by some investors over his tweets.

He is also being sued for defamation by the British cave diver Vernon Unsworth, who helped rescue 12 Thai teenagers from a flooded cave in July, over tweets claiming the diver is a paedophile.

Last night Tesla said the request from the DoJ for documents had been voluntary. It added: ‘We have not received a subpoena, a request for testimony, or any other formal process.’