Tesla Filing: SEC Issued Subpoena Over Model 3 Production

The Securities and Exchange Commission and Department of Justice are investigating projections made last year about Model 3 production rates, according to a regulatory filing.

The filing from Tesla admits to investigations regarding Elon Musk’s statement  of “considering taking Tesla private,” as well as projections for Model 3 production made in 2017.

Here’s the text included in Tesla’s 10Q filing:

We receive requests for information from regulators and governmental authorities, such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice (“DOJ”) and various state agencies. We routinely cooperate with such regulatory and governmental requests.

In particular, the SEC has issued subpoenas to Tesla in connection with (a) Mr. Musk’s prior statement that he was considering taking Tesla private and (b) certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production. The DOJ has also asked us to voluntarily provide it with information about each of these matters and is investigating.

Aside from the settlement with the SEC relating to Mr. Musk’s statement that he was considering taking Tesla private, there have not been any developments in these matters that we deem to be material, and to our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred. As is our normal practice, we have been cooperating and will continue to cooperate with government authorities. We cannot predict the outcome or impact of any ongoing matters. Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows, and financial position.

It’s the first time Tesla has said that the SEC has issued subpoenas to the company for information about the Model 3 production.

 

[dauger]

Enough of this!

I'm a TSLA investor. Can they please depose me so I can testify that I was not deceived by anything Elon or Tesla tweeted or said, from production to whatever was secured?

Conversely I’m interested in participating in a class-action suit against the SEC for taking action, whether the SEC knew or was reckless in not knowing, that harms my investment.

 

[groovidad]

I've been following TSLA stock for 2 yrs now. Don't own any but, looking at valuation and effects on that, by whatever issues arose. (This was my initial research that was guiding me to purchase a Model 3) The "going private" tweet most certainly had a positive effect but, was quickly diminished when the mention of the SEC investigating. In reference to the statements about vehicle builds at "5k"/wk, and it didn't happen-at least for several months, the "blip" in share value was negligible. Further, I really didn't read or hear of projected production numbers angering stock holders. That said, this is not the first time, in modern industrial history, that projected production forecasts were not in line with reality. I may have missed something but, I don't believe the SEC will have any footing on this subpoena. Granted, I'm not a financial analyst, and I'm sure some suit can stratify the numbers in a busy graphic presentation still, TSLA fluctuated, day to day for years. Q3 financials certainly had a substantial impact on share value. My thoughts are there is more to this than making forecasts and failing to meet forecasted production numbers(?) There are a great many naysayers out there and many of them are flipping from the short to long. I think it was the shorts, that lost billions, that are crying and driving the SEC investigation(?) Regardless of the outcome, TSLA stock will be fine and Musk will continue to manage the helm of TESLA into the future. After all, he is the cult of personality!

 

[Visscher]

The SEC can win a case like this and here is why:

1) Stock Fluctuates
2) they will find an up or down at the time they want to prove that correlation equaled causation


3) they are short TSLA

 

[groovidad]

The SEC can win a case like this and here is why:

1) Stock Fluctuates
2) they will find an up or down at the time they want to prove that correlation equaled causation


3) they are short TSLA

I agree, brother but, they are going to have to show comparisons similar to this particular issue and disclose the punishment, if any, placed on those comparisons. I'm sure there are some out there just don't know of any quite like this.

 

[dennisca]

Why is this article's title so misleading? It sounds like the SEC Subpoena was just issued. However at the end of the article we learn that this happened many weeks ago. Is this an attempt by short sellers to confuse the public about what is happening with Tesla?