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