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Tesla shares fall after another dose of bad news

Data: FactSet; Chart: Harry Stevens/Axios

Tesla shares closed down more than 3% after making up significant ground, following reports that the Justice Department is investigating Tesla and CEO Elon Musk's "funding secured" head fake.

Why it matters: Today's stock moves were not as bad as some feared, especially since shares of Tesla are down about 20% since the fateful August tweet. Tie in Musk's other troubles (including an SEC civil inquiry and a suit from a Thai cave diver), and the stock's volatility is far from over.

Report: Tesla and Elon Musk face criminal investigation

Elon Musk
Photo: Joshua Lott via Getty Images

The Department of Justice is investigating Tesla and its CEO Elon Musk for fraud, after Musk tweeted last month that he had "funding secured" for a possible buyout of the company at $420 per share, reports Bloomberg.

The big picture: Tesla already is under civil investigation by the SEC for the same tweet.