The company said it had received a voluntary request for documents and is cooperating. The tweet sent stocks soaring almost 11 percent that day, as Musk elaborated, "I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible".
Tesla's stock, which has lost about 25 percent since its gains on August 7 after Musk tweeted about going private, fell 4.8 percent to $280.79 on Tuesday. At this point, though, Elon Musk already had reservations, particularly since it would be incredibly hard to bring over TSLA's retail investors into a privatized Tesla.
FOX Business reported last month that the Securities and Exchange Commission ramped up a civil investigation into the automaker over the same comments. Tesla shares dropped to 7.9% today after news broke about the possible investigation. After emailing Musk for comment, the site published his response in which he tells the reporter "stop defending child rapists". The suit also claims that Musk called Unsworth a child rapist and sex trafficker in an August 30 email to BuzzFeed News.
Once it has solved its "insane vehicle delivery logistics", Musk said, Tesla would concentrate on launching more service centers to improve the pace of repairs and bringing collision repairs in-house. Abraham Simmons, a spokesman for the USA attorney's office also declined to comment at this time.
Thai cave diver sues Tesla's Elon Musk for defamation
Tesla has confirmed to Bloomberg that it has been contacted by the Justice Department. Authorities could also look into the circumstances surrounding the resignation of Tesla's Chief Accounting Officer, Dave Morton, after less than a month on the job, the person said.
"We have not received a subpoena, a request for testimony, or any other formal process", a Tesla spokesman said in an emailed response to Reuters questions about an investigation. Musk has since backpedaled on this statement. The weeks following these announcements were incredibly volatile, as SEC investigations were reportedly begun, lawsuits were filed, and TSLA shares took a dive.
Vernon Unsworth sued over Mr Musk's reference to him in a July 15 tweet as a "pedo guy", a comment for which Mr Musk later apologised.
"The whole format of his announcement was highly problematic and very unusual", Harvey Pitt, a former SEC chairman who now leads advisory firm Kalorama Partners, said last month on Bloomberg Television.More news: Gunmen dressed as mariachi band shoot dead five people in Mexico City