A former employee of Tesla on Thursday issued a statement accusing the electric vehicle manufacturer of not informing authorities of the alleged involvement of a number of employees in drug trafficking ring.
Karl Hansen, a former security worker, said in his statement that employees at the Nevada Gigafactory were allegedly involved in trafficking "significant quantities of cocaine and possibly crystal methamphetamine" for a Mexico-based cartel, according to a New York Post report.
He also mentioned that he had filed a complaint to the Securities and Exchange Commission (SEC).
Alleging that an internal investigation into criminal activities was quashed by Tesla, Hansen said that he was directed to hide a $37 million theft of raw materials from the Nevada factory, adding that another worker was fired for failing to comply, labeling him not a "Tesla team player."
Hansen also alleged that Tesla co-founder and CEO Elon Musk had sanctioned spying on employees.
A spokesperson for Tesla said that the allegations leveled by Hansen were being investigated and that he had refused to communicate with the company to further discuss the issue.
"Mr. Hansen's allegations were taken very seriously when he brought them forward. Some of his claims are outright false. Others could not be corroborated, so we suggested additional investigative steps to try and validate the information he had received second-hand from a single anonymous source. Because we wanted to be sure we got this right, we made numerous attempts to engage further with Mr. Hansen to understand more about what he was claiming and the work that he did in reaching his conclusions. He rejected each of those attempts, and to date has refused to speak with the company further. It seems strange that Mr. Hansen would claim that he is concerned about something happening within the company, but then refuse to engage with the company to discuss the information that he believes he has," the spokesperson said.
This makes Hansen the second former Tesla employee in recent times to unravel the alleged malpractices at the company after Martin Tripp had alleged defects in the manufacturing process at a battery factory, saying that the company sold products that could harm drivers.
An investigation has been mounted by the SEC to ascertain if Musk had deliberately misdirected Tesla investors. This adds to the legal trouble that the electric car manufacturer is faced with amid its plans to go private.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)