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Tesla Motors (TSLA) Reportedly Under Foreign Parts Probe; Shares Off

 December 04, 2012 11:10 AM


(By Balaseshan) Tesla Motors Inc. (NASDAQ: TSLA) shares are dropping amid reports that the electric vehicles manufacturer may be under a federal probe for using foreign parts instead of American ones.

The U.S. Immigration and Customs Enforcement (ICE) is investigating whether or not Tesla was using its foreign trade zone status to bypass federal loan requirements, which companies accepting the funding must use domestically produced parts,  the Washington Times (WT) reported.

[Related -Forget Tesla: Profit From These 2 Surprise Electric-Vehicle Stocks]

The WT report also stated that the ICE approached the Department of Energy's Office of Inspector General a year back, ahead of Tesla's "subzone" trade zone application approval in September 20, 2012.

The energy department declined to join the investigation, saying the funding to Tesla came about via a federal appropriations bill and not under President Barack Obama's stimulus program, the WT stated.

The investigation details came into light as a result of a request by The Washington Times for final investigations summaries by the Energy Department for probes involving federal stimulus funds.

In early 2010, the Department of Energy closed its $465 million loan with Tesla for construction of a manufacturing facility in southern California on the Model S electric sedan and a power-train manufacturing facility in Palo Alto, California.

[Related -Tesla Motors Inc. (TSLA) – 3T Analysis: Driving Towards the 52-Week High]

TSLA is trading down 2.05% at $33.91 on Tuesday. The stock has been trading between $22.64 and $39.95 for the past 52 weeks.

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(4)
 
12/5/2012 12:11:44 AM
by Carl Feldhaus
Old news and closed investigation. http://www.torquenews.com/1075/foreign-parts-investigation-against-tesla-closed-year-ago-finding-nothing-wrong
Rating: (9) (0)
Wow. The article you linked shows Tesla was cleared because their loan was from the Advanced Technology Vehical Loan program and not the 2009 Recovery Act which has stipulations to buy American parts. This investigation was closed almost 1 year ago, but the istockanalyst article makes it sound like it's happening now and is trying to use it as the reason for today's price drop.
12/5/2012 3:20:17 AM
by Russell
Wow. The article you linked shows Tesla was cleared because their loan was from the Advanced Technology Vehical Loan program and not the 2009 Recovery Act which has stipulations to buy American parts. This investigation was closed almost 1 year ago, but the istockanalyst article makes it sound like it's happening now and is trying to use it as the reason for today's price drop.
Rating: (9) (0)
12/5/2012 7:15:05 PM
by Jack M. Burgess
The above comments have it right. The Tesla DOE loan funded under Public Law 110-329 was signed by President Bush on 9/30/2008. It has absolutely NOTHING to do with the American Recovery and Reinvestment Act of 2009. The DOE has already explained this to the folks at Immigration and Customs Enforcement. Furthermore, the DOE has refused to have anything to do with this nonsense investigation. I'm interested in finding out who was behind this boondoggle and why. Also, the press handled this VERY poorly. Yesterday this faux investigation got more media play than the news that Tesla went cash flow positive!!! The blatant media manipulation yesterday was appalling. Perhaps this was done because some folks are getting nervous about their short positions?
Rating: (2) (0)
Do you think there is a conspiracy mounting against Tesla? After watching Who Killed The Electric Car, I think there is. http://m.youtube.com/#/watch?v=IENnSK8Q6nE
12/6/2012 1:44:32 AM
by Russell L
Do you think there is a conspiracy mounting against Tesla? After watching Who Killed The Electric Car, I think there is. http://m.youtube.com/#/watch?v=IENnSK8Q6nE
Rating: () ()
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