No sooner did Charlie Gasparino at Fox Business News drop the bomb today that Tesla’s legal team is “bracing for billions of dollars in potential liability from private lawsuits” than a second proposed SEC formal whistleblower has now entered the picture, and according to Jalopnik, drumroll, he alleges that Tesla failed to let shareholders know that the DEA had previously uncovered an alleged Mexico-based drug trafficking ring involving “large quantities” of cocaine and crystal meth at the company’s Nevada Gigafactory.
The situation looks like it could be quickly spinning out of control at Tesla. Earlier this week, the New York Times reported that the board, who so far has come off as heavily sedated and generally missing from the picture, was finally apparently at odds with CEO Elon Musk about his use of Twitter and the potential liability he may have brought onto the company. It was then proclaimed by numerous former SEC attorneys on various news networks that SEC action based on Musk’s “go private” Tweet is likely unavoidable. These sentiments were echoed today by a former SEC attorney on streaming financial news network Cheddar.