The US Securities and Exchange Commission has opened an investigation into Tesla over a whistleblower complaint that the company failed to notify its shareholder and the public of fire risks from defects in its solar panel system, according to a letter seen by Reuters.
Reuters reported that the agency began the investigation after a Freedom of Information Act request by Steven Henkes, a former Tesla field quality manager, who filed a whistleblower complaint over fire risks in 2019.
Musk hinted last week that the company was expecting whistleblower revelations to emerge, tweeting: "Blow the whistle on Tesla!" and including a link to a branded "Cyberwhistle" for sale on the company's website.
Tesla investors are looking the other way on Elon Musk 'red flags'
"We have confirmed with division of enforcement staff that the investigation from which you seek records is still active and ongoing," the SEC said in a 24 September response to Henkes. The SEC official said the letter should not be taken as an indication by the agency that violations of law had occurred.
Henkes was fired from Tesla in last year and sued, claiming the dismissal was in retaliation for raising safety concerns over the defective electrical connectors in its solar panel systems.
More than 60,000 customers in the US and 500 government and commercial accounts were affected by the issue, according to his lawsuit over wrongful termination.
Elon Musk approaches midway point of 10% sale after offloading $9bn of...
Read Full Story:
https://www.investmentweek.co.uk/news/4041650/sec-tesla-investigation-whistle...