Trump freezes Tesla supplier laws | Real Time Headlines

Law enforcement president of anti-bribery laws Donald Trump have pause Previously it was Ministry of Justice and financial regulators win settlements, totaling more than $1.5 billion in companies, which are the main suppliers Teslaan electric car giant run by Trump allies Elon Musk.

Trump among his executives Order The law that suspended ban on bribery of foreign officials on Monday said, “U.S. national security depends largely on the U.S. and its companies “get strategies in critical minerals, deep-water ports or other major infrastructure or other major infrastructure or assets.” Business Advantages. ”

Tesla and other electric vehicle companies rely on key minerals, mainly batteries purchased overseas.

Key minerals and deep water ports are the only two specific advantages in the name, titled “Pause” Foreign Corrupt Practice Law Implement further U.S. economic and national security. ”

CNBC asked the White House whether Tesla and Musk played any role in pushing orders or included language about key minerals in the directive. The White House declined to comment.

According to Trump’s first month in office, he also signed executive orders and policy changes that could negatively impact Tesla, thereby significantly slowing down the adoption of U.S. electric vehicles Have a negative impact. Research firm Wood Mackenzie.

Tesla’s chief financial officer Vaibhav Taneja warned shareholders on a revenue call in January that Trump’s tariffs could damage the company’s profitability.

Nevertheless, Musk’s power and influence within the Trump White House have no precedent in modern politics.

Musk is the richest man in the world, spending nearly $300 million to help Trump win the 2024 presidential election.

Given Musk’s estimated net worth is about $400 billion, that’s relatively small. But it is enough to solidify his position as Trump’s most prominent supporter and adviser.

Now Musk works in the White House, where he is responsible for a broad and controversial effort known as the Department of Government Efficiency (called Doge) to cut federal spending, employee numbers, regulations and agencies.

In addition to serving as Tesla and the leading road CEO, Musk controls several other companies, including defense contractor SpaceX, social media platform X, Chatbot and Generative AI developer XAI, boring company Tunnel Enterprise and Neurotech Startup Neuralink.

this Foreign Corrupt Practice Law In 1977, companies and individuals doing business in the United States bribed foreign government officials to obtain or retain business advantages for crimes.

FCPA has long been regarded as the gold standard for anti-corruption regulations and it has been adopted by countries around the world.

But on Monday, Trump said the FCPA “systemically… extends the appropriate scope and abuses it in ways that harm U.S. interests.”

Trump ordered Attorney General Pam Bondi to stop for 180 days and start any new FCPA investigation or law enforcement measures unless she determines that exceptions should be made.

He also ordered Bundy to review “all existing FCPA investigation or law enforcement measures and to take appropriate action … to restore the appropriate boundaries of FCPA implementation.”

Then, with a very unusual move, the order directed Bundy to review past cases under the previous administration to determine if any FCPA enforcement lawsuits were “inappropriate”.

If Bundy finds himself like this, the order says “remedies” should be taken to compensate the parties allegedly breached.

In these previous enforcement actions, Bondy will conduct a review, with at least four cases involving Tesla suppliers or its subsidiaries.

None of these cases mentions behaviors directly related to Tesla.

But in summary, they reveal the important role FCPA plays in regulating business practices in key minerals and mining sectors.

In May 2022, two divisions of multinational commodity trading and mining companies Glencore Enfessed guilty and agreed to pay more than $1.1 billion Resolve the Ministry of Justice and Commodity Futures Trade Commission They violated FCPA.

The FCPA allegations are linked to Glencore and its subsidiary’s decade-long plan to “make corrupt payments and bribes through intermediaries to benefit foreign officials in multiple countries,” the DOJ said at the time.

Glencore is a major supplier of metals used to manufacture lithium-ion batteries.

Tesla purchased cobalt from its electric battery from Glencore. In 2021, Tesla discusses buying shares in Glennell Wall Street Journal Report.

DOJ pointed out at the time that Glencore “agreed to retain three years of independent compliance monitors” as part of its guilty plea in May 2022.

In March 2023, global mining giant Rio Tinto paid a relatively small fine, $15 million Resolve allegations related to FCPA Depend on Securities and Exchange Commission Payment originated from Guinea consultants.

Tesla has Agree to buy 75,000 metric tons of nickel Joint mining enterprises from Rio de Janeiro in the upper Midwest.

Six months after settlement in Rio de Janeiro, North Carolina specialty chemicals manufacturer Albermar – The largest producer lithium In the World – Agree to pay more than $218 million to resolve the investigations between the Justice Department and the Justice Department Second.

in this case, FCPA violation Programs related to Albemarle’s participation in the program to bribe government officials in multiple foreign countries, including Vietnam, Indonesia and India.

The three-year non-concern agreement related to the Justice Department’s settlement remains valid for Albermarle, which provides Tesla with lithium.

In 2018, Panasonic Avionics. , a department in the United States Panasonic.

In the relevant procedures, Panasonic agreed to pay approximately $143 million in currency to the SEC after the agency filed a stop order.

Panasonic Avionics “has provided a lucrative consulting position to a government official at a state-owned airline to lure the official to help PAC obtain and retain business from the airline.”

“When planning the bribery plan, PAC is reaching two agreements with airlines worth more than $700 million,” the SEC said.

Panasonic makes batteries for Tesla, and the two companies share a factory in Nevada.