After a media report said that Tesla Motors Inc. might be taken over an investigation on behalf of investors of Tesla Motors Inc ( NASDAQ: TSLA) over possible breaches of fiduciary duties was announced.

The investigation by a law firm is at a preliminary stage and monitors the takeover rumors. It concerns whether Tesla Motors, certain of its officers and directors, and/or others breach their fiduciary duties owed to Tesla Motors (TSLA) investors in connection with the takeover rumors or in the event of a takeover.

Tesla Motors Inc has performed well for its investors in the past. Tesla Motors 12months Total Revenue jumped from $0.07million on 2007 to $116.74million in 2010. For the first quarter in 2011 Tesla Motors Inc reported a quarterly Revenue of $49.03million compared to $20.81million a year earlier.

Shares of Tesla Motors Inc (NASDAQ:TSLA) rose from $15.80 during July 2010 to as high as $34.57 per share in November 2010. Recently Tesla Motors Inc stock traded as slightly below $27 per share TSLA share.

Therefore the investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of Tesla Motors Inc (NASDAQ :TSLA). The investigation focuses whether the Tesla Motors board of directors will undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Tesla Motors (NASDAQ:TSLA) and will breach their fiduciary duties to Tesla Motors (TSLA) shareholder by failing to adequately shop the Company before entering into any transaction. In addition the investigation seeks also to determine if any officer, director or any insiders violated any laws in connection with the takeover rumors. The investigation concerns also whether the acquirer would underpay for NASDAQ:TSLA shares, thus unlawfully harming Tesla Motors (NASDAQ TSLA) investors. A potential class action lawsuit would seek to maximize the amount of money and information TSLA shareholders would receive in a buyout, so the law firm.