Tesla clears Twitter deal overhang - the next hurdles could be a DOJ probe, China lockdowns and U.S. recession
Xiaolu Chu

Tesla (NASDAQ:TSLA) is a topic of discussion on Capitol Hill once again. U.S. Senators Richard Blumenthal and Ed Markey said they were encouraged by the report of a criminal probe into Tesla (TSLA) over autopilot claims (TSLA). The lawmakers issued a joint statement in which they reminded that they have long sounded the alarm about Tesla's (TSLA) misleading marketing practices, which are alleged to have overstated the real capabilities of its vehicles and put drivers and the public at grave risk.
The senators noted that they plan to continue pressing for oversight of Tesla (TSLA) to avert driver confusion and prevent deadly crashes. They will also push for accountability if any misconduct is uncovered.
As part of the latest probe into the electric vehicle maker, the Department of Justice prosecutors are reported to be specifically probing whether Tesla misled consumers, investors and regulators by making unsupported claims about its driver assistance technology's capabilities.
While Elon Musk's closing on the Twitter deal is largely believed to have removed an overhang on Tesla (TSLA), the stock is in negative territory on Friday. Potentially impacting sentiment, Amazon's guidance update for the holiday quarter is being called an early warning sign of a recession in the U.S. and news out of China on stricter COVID lockdowns has broadly rattled stocks tied to China manufacturing and supply chains.
Tesla (TSLA) fell 3.29% in morning trading on Friday. TSLA now trades more than 10% below its 50-day, 100-day, and 200-day moving averages.