Tesla Inc (NASDAQ:TSLA) CEO Elon Musk has responded to the allegations of “consumer fraud on a massive scale” made by Facebook co-founder Dustin Moskovitz.
What Happened: On Thursday, Moskovitz, the CEO and co-founder of software company Asana, took to Threads and accused Tesla of fraudulent practices. He likened the EV giant’s actions to those of Enron, a corporation that went bankrupt in 2001 due to a massive accounting fraud.
“I know I sound crazy to most people who don’t follow $TSLA closely but at this point it really needs to be said. This is Enron now, folks,” he said, adding, “It may keep going, but people are going to jail at the end.”
He went on to say, “Tesla has committed consumer fraud on a massive scale, from lying about FSD, ranges, and (recently, unconfirmed!) even inflating odometers,” adding, “Many times now, also securities fraud.”
See Also: Elon Musk Agrees Every American Household Will Have A $1,000-Per-Month Home Robot In 7 Years’ Time
Moskovitz’s allegations are based on a graph Tesla shared to mark a significant milestone: one billion miles driven using Full Self-Driving, the company’s advanced driver assist system.
He said that Tesla is incorrectly recognizing its deferred revenue as earned revenue through the wider release of its Autopark feature, resulting in inflated numbers.
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Musk has been responding to his allegations on X, formerly Twitter, mostly by ridiculing Moskovitz. In one of the posts on X, he said, “Yeah, Dustin is the one who should go to jail for impersonating a smart person,” Musk wrote.
Why It Matters: This is not the first time Moskovitz has criticized Tesla and Musk. Last year, he called for Musk’s resignation from all his roles, including his position as CEO of Tesla, following a controversial tweet endorsing an antisemitic post.
Moskovitz’s skepticism about Musk’s success also led to a contentious debate over whether Musk’s companies, Tesla and SpaceX, were as revolutionary as they were portrayed.
“If they were really built on outward lies, rather than just self-deceptions (rose-colored glasses), then we should really see them as scams he got away with,” he said in July 2023.
Meanwhile, Tesla has been facing a tumultuous period, with the company reporting a 9% year-over-year revenue decrease in the first quarter of 2024. The revenue total fell short of the Street consensus estimate of $22.15 billion, according to data from Benzinga Pro.
Price Action: Tesla shares closed 1.11% lower at $168.29 on Friday.
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Read Next: Elon Musk's Tesla Slashes Price Of Full Self-Driving Package By Half: ‘…Now $99/Month'
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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