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Elon Musk, chairman and chief executive officer of Tesla Motors
Tesla shares dropped almost 5 percent after Bloomberg News reported that the company is facing a criminal probe over CEO Elon Musk’s tweets about taking the company private.
Musk tweeted on Aug. 7 that he was thinking about taking the electric car maker private at $420, sending the stock soaring 11 percent, near an all-time high, that day to $387.46. All of those gains — and then some — have since been erased.
Tesla’s value has fell by almost a third as more than $21 billion in market capitalization has been wiped away.
A request for comment to the Department of Justice wasn’t immediately returned.
Securities lawyers have previously said his off-the-cuff comments will likely draw fines from the SEC for the company and exposed Musk to possible criminal charges.
This story is developing. Please check back for updates.
