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Tesla Motors (TSLA -1.8%) is under investigation over whether or not the electric vehicle...

Tesla Motors (TSLA -1.8%) is under investigation over whether or not the electric vehicle automaker used its foreign trade zone status to bypass requirements that it buy parts from American companies. Though the issue will draw attention with Tesla a bit of a political lightning rod, a tweet from Elon Musk indicating the company was narrowly cash flow positive last week could balance sentiment.
Comments (10)
  • That is absolutely ridiculous. This is the kind of red tape which makes companies not want to operate here.
    4 Dec 2012, 10:07 AM Reply Like
  • Interesting that Elon Musk and the probe make statements almost simultaneously while the market is closed------
    4 Dec 2012, 10:23 AM Reply Like
  • I think this "requirement" is linked to the $450 million they borrowed from the US government.

     

    I think the imported bit is the battery cells. They also buy some suspension components from Europe.
    4 Dec 2012, 01:50 PM Reply Like
  • also a report out yesterday stating a massive amount of put buying in Tesla----don't know but funny he was the day before the probe was made public----

     

    Guess Elon better give out weekly cash flows if they are positive-----
    4 Dec 2012, 03:03 PM Reply Like
  • I am a huge fan of Tesla. But I feel they SHOULD follow the rules regarding the purchase of USA made goods and services since they received a shitload of US tax dollars in the form of a DOE Loan.

     

    If they dont want to comply they should pay back the loan in full.
    4 Dec 2012, 04:54 PM Reply Like
  • Wasn't a loan at all. It was a loan guarantee...i.e. If Tesla goes broke then the govt must pay the banks that loaned Tesla money.
    Tesla ain't going broke, quite the opposite actually.
    Funny thing is that these stupid accusations hurt Tesla which could in turn hurt the US taxpayer...who WILL be on the hook if Tesla fail.

     

    I doubt any car in the world is or even could be built with 100% USA made parts. The auto industry is probably the most multi-national in the world with all sorts of components being made everywhere that they can be made the cheapest.

     

    Tesla has provided over 4,500 US jobs at a car plant that was shut down by GM and Toyota back in 2010.

     

    I have no doubt this is about someone in Detroit being unhappy that Tesla isn't using crappy USA batteries (from such great companies as the now bankrupt A123 Systems).
    They use Panasonic batteries because they are the best and they work. If they had used A123 they would have had to halt production (as Fisker is now) putting those 4,500 jobs in jeopardy.

     

    What a idiotic system.
    4 Dec 2012, 05:41 PM Reply Like
  • So how active is this probe by ICE? The Washington Post article suggests it all happened already 1 year ago. At the time, DoE refused to cooperate with the probe. There is absolutely nothing to suggest that any further actions were taken by ICE against Tesla. ICE, of course, will not comment either way, as it never does. All the known facts point to this being a closed case.
    5 Dec 2012, 02:43 AM Reply Like
  • Yup, this is not an actual investigation at all. One might speculate why it was brought up at this time, after TSLA stock had been heading up and Model S production is increasing...
    5 Dec 2012, 08:27 AM Reply Like
  • every time I'm tempted to again load up on Tesla stock or options the unrelenting sales of insider selling brings me back to reality-----i perfectly understand some insider selling but the selling of every share these corporate bigwigs can get their hands on boggles the mind of reasonable investors--------
    6 Dec 2012, 01:53 PM Reply Like
  • The biggest bigwig has bought the most.
    7 Dec 2012, 09:01 AM Reply Like
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