Tesla (TSLA) Said to Be Under Federal Investigation for Buying Foreign Parts

December 4, 2012 9:28 AM EST Send to a Friend
Tesla Motors (Nasdaq: TSLA) is ticking lower Tuesday following reports the it might be under a federal probe.

According to the Washington Times (WT), the U.S. Immigration and Customs Enforcement (ICE) is cracking down on Tesla for using foreign parts in the construction of its vehicles. Specifically, ICE wants to know whether or not Tesla was using its foreign trade zone status in an effort to bypass federal loan requirements that companies accepting the funding must use domestically produced parts.

In 2010, Tesla entered a $465 million loan with the U.S. Dept. of Energy (DoE), noted the WT.

The ICE approached the DoE Inspector General just about this time last year, whereas Tesla's "subzone" trade zone application was approved in September of this year.

Amid the ICE inquiry, the DoE declined to join the investigation, saying Tesla's funding came about via a federal appropriations bill.

The ICE is neither affirming nor denying an investigation and nothing has been disclosed via an SEC filing by Tesla. Shares are down nearly 2 percent early.


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Comments

STOCK MANIPULATION
Jack Burgess on 2012-12-07 15:31:41
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To continue to post this old non-story is pure stock manipulation.

OLD NEWS -- WHY NOW?
Jack Burgess on 2012-12-07 12:01:54
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This "investigation" was closed a year ago. See http://www.torquenews.com/1075/foreign-parts-investigation-against-tesla-closed-year-ago-finding-nothing-wrong .

WHAT IS VERY INTERESTING HOWEVER, IS THE TIMING OF THIS OLD "NON-STORY".

Tesla Motors is the most highly shorted stock on the NASDAQ. So a lot of people stand to lose serious money if the price of the stock goes up.

IT'S QUITE A COINCIDENCE THAT ELON MUSK TWITTERED THAT TESLA WENT CASH FLOW POSITIVE THE EVENING BEFORE THIS OLD "NON -STORY" BROKE.

Tesla has quite an interesting set of backers -- Toyota, Daimler, Panasonic, Goldman Sachs. And yesterday through a 13G SEC filing, we see that BlackRock, Inc. (the world's largest asset manager with $3.7 TRILLION in assets) has just purchased 5% percent of Tesla. Over 5.6 million share worth about $193 million. See http://blogs.wsj.com/corporate-intelligence/2012/12/07/blackrock-buys-a-stake-in-tesla/ .

With the "smart money" buying Tesla stock, is it really any wonder that some well-connected "shorters" promoted an old bogus investigation story to give themselves some time to get out of their short positions?


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