Tesla shares fall after report of criminal investigation

In this June 14, 2018, file photo, Tesla CEO and founder of the Boring Company Elon Musk speaks at a news conference in Chicago. (AP Photo/Kiichiro Sato, File)

DETROIT -- Shares of electric car maker Tesla Inc. fell more than 5 per cent Tuesday after a report that it's under criminal investigation over statements about taking the company private.

Bloomberg News reported that the Justice Department probe is running parallel to an investigation by the Securities and Exchange Commission. The news service cited two people familiar with the matter that it did not identify.

Tesla CEO Elon Musk tweeted last month that funding was secured to take the company private. The announcement raised the stock price 11 per cent in one day, but it has since fallen.

Later the company admitted that funding wasn't lined up and eventually Musk abandoned the idea.

Tesla shares fell 5.3 per cent to $279.13 in midday trading. Tesla did not immediately respond to a request for comment.