FDA probes 5th infant illness tied to Abbott formula, former Nikola CEO charged with wire fraud

Notable business headlines include the FDA investigating the death of an infant who consumed formula by Abbott Laboratories, Tesla CEO Elon Musk calling his factories “gigantic money furnaces” as firestorms surround the company, and former Nikola Motors CEO Trevor Milton being charged with wire fraud.

Video Transcript

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JULIE HYMAN: Now some other business headlines we're watching at this hour. The Food and Drug Administration is investigating the death of another infant who consumed formula made by Abbott Laboratories. Bacteria was found in the infant at the time of death. And the news comes after a February recall of formula from the company's Michigan plant, following illnesses in four infants, two of them dying.

In all of these incidents, the FDA says it has not been able to determine if the formula was the reason for the illnesses. The news, though, was the latest headline around Abbott's formula production woes, including a recent shutdown of the Michigan factory over flooding and unsanitary conditions discovered earlier in the year. All of this as baby formula continues to be difficult for parents to find.

Elon Musk is adding fuel to the recent firestorms around Tesla. The CEO calling its German and Texas factories, quote, "gigantic money furnaces." He said that in an interview with an owner's club that was released on Wednesday. Musk also said his overwhelming concern is how to keep the factories operating to continue paying people and not go bankrupt, although he added that he expects to resolve these problems quickly.

And staying with the EV stocks, New York Federal prosecutors are charging Nikola Motors founder and former CEO Trevor Milton with wire fraud over his purchase of a ranch in Utah paid in part with Nikola stock. Prosecutors say Milton defrauded the ranch's seller by making false and misleading statements about Nikola's products and business prospects. Milton, by the way, already under indictment for multiple counts of fraud.