A Tesla plan to purchase hard-to-get construction materials is being investigated by U.S. prosecutors, who are looking at whether the project was an appropriate use of company funds, Bloomberg reported.
Federal prosecutors also are looking into Tesla performance claims after Reuters reported the EV maker exaggerated the potential driving distance of its vehicles, The Wall Street Journal reported on Wednesday.
In the purchasing investigation, the U.S. Attorney’s Office in New York has sent subpoenas to a number of current and former employees at the EV maker in recent weeks seeking information related to the materials, according to people familiar with the probe.
The requests for information focus on correspondence with Omead Afshar, a key lieutenant to CEO Elon Musk and the individual at the center of an internal Tesla probe into the issue, said the people, who asked not to be identified because the matter is private.
Prosecutors are reviewing a 2022 purchase order for construction material that was identified as suspicious by company officials. The order, for a special kind of glass, was flagged to Tesla’s finance and internal audit groups earlier last year.
Afshar, who Bloomberg reported later took on a role at Musk’s SpaceX, couldn’t be reached to comment.