U.S. regulators demand Tesla hand over information amid investigation into production forecasts

Monday, 05 Nov, 2018

Federal securities regulators have issued subpoenas regarding Tesla's public assurances over the production of its newest vehicle, the company said Friday, the latest signal of an increasingly aggressive investigation into Elon Musk's electric automaker.

The company originally said in its third-quarter earnings call a year ago that it would reach full production of 5,000 Model 3s per week in the first quarter of 2018.

Elon Musk says that Apple's products don't blow people's minds anymore.

Tesla on Friday was hit with a subpoena by the Securities and Exchange Commission, which is probing projections the electric carmaker made for Model 3 production rates past year. The company made only just 2425 in the entire fourth quarter. It didn't hit the 5,000-a-week target until June 2018.

The Federal Bureau of Investigation is examining whether Tesla incorrectly stated information about production of its Model 3 sedans, misleading investors in the process, as far back as early 2017, the Wall Street Journal reported.

"Given the feedback I've received, it's apparent that most of Tesla's existing shareholders believe we are better off as a public company", Musk wrote Friday.

It was in 2015 that PM Modi tweeted how he was impressed by the power ball technology of Tesla Motors which stores electricity in a battery for long term. Tesla's SEC filing said that an enforcement action from either agency could damage its business, cash flow and future prospects.

However, Musk elaborated on his noncommittal statement by hinting there could be Saudis from whom Tesla would still accept money.

Last month Tesla reported a $311.5 million profit for the July-through-September period, its first quarterly profit in two years.

Tesla shares finished the day Friday up 0.6 percent, at $346.41.