- Tesla (NASDAQ:TSLA) is facing a “deepening” criminal investigation into its public statements about Model 3 production, the Wall Street Journal reported Friday.
- The company denied the reports — and now Wall Street is expressing its skepticism as well.
- Shares of Tesla gained more than 3% at the opening bell Monday. Follow the stock in real-time here.
A report from the Wall Street Journal on Friday that said Tesla is facing a “deepening criminal investigation” in regards to its public statements about Model 3 production ramp has been met with skepticism on Wall Street.
“We think it will be difficult for prosecutors to prove criminal wrongdoing,” Ben Kallo, an analyst at Baird, said in a note to clients as reported by Bloomberg. Kallo, who has a bullish $411 price target for the stock, added that “investigators would need to find evidence TSLA made projections it knew would be impossible to achieve, which we believe is a high bar to meet.”
Kallo also added that the article “largely recycled previously reported information,” and that it finds “certain
aspects of the article suspect.”