Tesla ignored drug dealing, spied, fired employee tells SEC
A former Tesla employee alleges in a filing with the Securities and Exchange Commission that the electric carmaker hacked and wiretapped cellphones and computers of current and former employees, and failed to report to federal authorities possible drug dealing at its Northern Nevada Gigafactory.
The former employee, Karl Hansen, worked in the company’s internal security department and investigations division until he was dismissed on July 16. Hansen alleges his dismissal was because he raised concerns about the wiretapping, hacking and drug dealing, and presented evidence to Tesla about the theft of $37 million worth of copper and other raw materials from the Gigafactory.
Hansen is the second former Tesla employee to bring allegations to the SEC. Stuart Meissner, managing partner of New York-based Meissner Associates, said Thursday that Hansen’s tip was filed with the SEC on Aug. 9, three days after Tesla filed its quarterly report with the Commission.
“What Mr. Hansen is hoping to achieve is that the SEC will investigate these events, and how Tesla handled, or didn’t handle, them,” Meissner said. “He hopes the SEC will investigate these events because he believes the company has placed its investors, and the general public, at risk.” Hansen hasn’t sued Tesla,
TESLA
Meissner added.
In his claim, Hansen says the company violated federal securities law by failing to disclose to shareholders issues including the following:
The company spied on employees by wiretapping and hacking their phones and computers. Hansen said that after Tesla dismissed whistleblower Martin Tripp, the company hacked into Tripp’s personal electronics and installed router equipment at its Gigafactory that was “designed to capture employee cell phone communications and/or retrieve employee cell phone data.”
Hansen claims he was told that CEO Elon Musk authorized such measures, and that the steps were implemented by members of Tesla’s internal investigations, security and information technology teams.
The company failed to disclose the results of an internal investigation into large-scale dealing in cocaine, and possibly methamphetamine, at the Gigafactory.
Hansen said the company received a notice on May 24 from the U.S. Drug Enforcement Administration/storey County Sheriff ’s Office Task Force alleging a Tesla employee was dealing drugs at the Gigafactory on behalf of a Mexico-based cartel. Hansen said that, as part of his job with Tesla’s securities and investigations
teams, he corroborated the DEA’S allegations and reported his findings to Tesla.
Hansen said the company claimed it would hire “outside vendors” to investigate the allegations but never took those or any other steps.
The company did not disclose the theft of $37 million worth of copper and other raw materials, which happened between January and June. Hansen said he was told to end his internal investigation, and another Tesla employee was fired after reporting some of the thefts to law enforcement. Hansen said the fired employee told him he was let go for not being a “Tesla team player.”
Tesla didn’t return a request for comment.