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Tesla Model 3, $2.2M seized from man who fraudulently obtained COVID-19 relief loans
A man in the State of Maryland is being charged with wire fraud after obtaining multiple COVID-19 relief loans. The man successfully received a $1.5 million payment from the Paycheck Protection Program and subsequently had $2.2 million and a Tesla Model 3 seized by various Law Enforcement agencies.
45-year-old Rudolph Brooks, Jr. of Cheltenham, Maryland, in the Southern portion of the State, had a criminal complaint filed against him on March 29th, 2021, and was subsequently arrested on April 2nd. Law enforcement agencies such as the Federal Bureau of Investigation’s (FBI) Baltimore Field Office and the Internal Revenue Service (IRS) announced the complaint following several attempts by Brooks, Jr. to obtain COVID-19 relief loans fraudulently.
It appears that Brooks obtained several checks that were aimed toward small business relief, including the Paycheck Protection Program that was introduced to help small businesses survive throughout the COVID-19 pandemic. While Brooks is the owner of a small business, he “allegedly submitted fraudulent tax forms which allegedly reported $724,469 in payments via Forms 1099-MISC and $7,471,630 in total unemployment payments to employees from Cars Direct,” the Department of Justice said in a press release.
Brooks received a $1,556,589 loan and was deposited into the bank account that he listed on May 9, 2020. One of his purchases occurred on July 30th, where Brooks initiated a wire transfer to Tesla in the amount of $60,407 for the purchase of a 2018 Tesla Model 3. The DOJ affidavit indicates that Brooks was, in fact, the purchaser of the vehicle. The Model 3 was also registered to Brooks’ name and to his address in Cheltenham.
In total, $2,296,136.86 was seized from eleven bank accounts, and the 2018 Tesla Model 3 was also recovered by the Department of Justice. The penalties entail a maximum sentence of 20 years in Federal Prison for wire fraud, followed by three years of supervised release.
While accelerating the transition to sustainable energy is undoubtedly the main interest of Tesla, buying an all-electric car through a fraudulent manner of actions is not ideal for helping the environment. Brooks also purchase 38 other used cars, the DOJ said. Some of the vehicles were a 2017 Mercedes Benz S Class, two 2017 Infinity Q50s, a 2015 Cadillac Escalade, a 2005 Bentley Continental, a 2014 GMC Yukon XL, and several older model luxury vehicles. The terms of the PPP loan do not show that the purchase of these vehicles is an appropriate use of funds. The business must use the PPP loan for payroll costs, mortgage interests, rent, and utilities.
Tesla made a change to the Cybertruck, and nobody noticed. But to be fair, nobody could have, but it was revealed by the program’s lead engineer that it was aimed toward simplifying manufacturing through a minor change in casting.
After the Cybertruck was given a Top Safety Pick+ award by the Insurance Institute for Highway Safety (IIHS), for its reputation as the safest pickup on the market, some wondered what had changed about the vehicle.
Tesla makes changes to its vehicles routinely through Over-the-Air software updates, but aesthetic changes are relatively rare. Vehicles go through refreshes every few years, as the Model 3 and Model Y did earlier this year. However, the Cybertruck is one of the vehicles that has not changed much since its launch in late 2023, but it has gone through some minor changes.
Most recently, Wes Morrill, the Cybertruck program’s Lead Engineer, stated that the company had made a minor change to the casting of the all-electric pickup for manufacturing purposes. This change took place in April:
We made a minor change on the casting for manufacturability in April. Our Internal testing shows no difference in crash result but IIHS only officially tested the latest version
— Wes (@wmorrill3) December 17, 2025
The change is among the most subtle that can be made, but it makes a massive difference in manufacturing efficiency, build quality, and scalability.
Morrill revealed Tesla’s internal testing showed no difference in crash testing results performed by the IIHS.
The 2025 Cybertruck received stellar ratings in each of the required testing scenarios and categories. The Top Safety Pick+ award is only given if it excels in rigorous crash tests. This requires ‘Good’ ratings in updated small and moderate overlap front, side, roof, and head restraints.
Additionally, it must have advanced front crash prevention in both day and night. Most importantly, the vehicle must have a ‘Good’ or ‘Acceptable’ headlights standard on all trims, with the “+ ” specifically demanding the toughest new updated moderate overlap test that checks rear-seat passenger protection alongside driver safety.
Tesla has entered an interesting situation with its Full Self-Driving suite in California, as the State’s Department of Motor Vehicles had adopted an order for a suspension of the company’s sales license, but it immediately put it on hold.
The company has been granted a reprieve as the DMV is giving Tesla an opportunity to “remedy the situation.” After the suspension was recommended for 30 days as a penalty, the DMV said it would give Tesla 90 days to allow the company to come into compliance.
The DMV is accusing Tesla of misleading consumers by using words like Autopilot and Full Self-Driving on its advanced driver assistance (ADAS) features.
The State’s DMV Director, Steve Gordon, said that he hoped “Tesla will find a way to get these misleading statements corrected.” However, Tesla responded to the story on Tuesday, stating that this was a “consumer protection” order for the company using the term Autopilot.
It said “not one single customer came forward to say there’s a problem.” It added that “sales in California will continue uninterrupted.”
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
Tesla has used the terms Autopilot and Full Self-Driving for years, but has added the term “(Supervised)” to the end of the FSD suite, hoping to remedy some of the potential issues that regulators in various areas might have with the labeling of the program.
It might not be too long before Tesla stops catching flak for using the Full Self-Driving name to describe its platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
The Robotaxi suite has continued to improve, and this week, vehicles were spotted in Austin without any occupants. CEO Elon Musk would later confirm that Tesla had started testing driverless rides in Austin, hoping to launch rides without any supervision by the end of the year.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Tesla made a change to the Cybertruck and nobody noticed
Tesla enters interesting situation with Full Self-Driving in California
