Tesla receives SEC subpoena about Model 3 production numbers

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A group of Tesla Inc. shareholders, including several USA state investment officials, called on the company's board to make sweeping changes to its governance to enhance oversight of Chief Executive Elon Musk.

"The SEC has issued subpoenas to Tesla in connection with... certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production". We already told you that the company plans to make the Model 3 in China and has hinted at achieving 7000 units production capacity.

The subpoena confirms that the SEC is investigating the company's production claims.

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Today's news follows on from recent reports in the Wall Street Journey that suggested Federal Bureau of Investigation agents were looking into whether or not Tesla misled investors about production of its Model 3 cars.

Tesla Inc. says in the filing that to its knowledge, no government agency in an ongoing investigation has determined that it did anything wrong.

Both the SEC and U.S. Department of Justice are looking at whether Tesla misled investors about its business. This prompted the CEO to tweet in August that he had the funding secured to buy out shareholders.

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Tesla's Model 3 production has been the focus of the company much of the year, and its paid off with profits. "Ford and Tesla made it barely through the last recession", he said. While the company admitted there would be challenges, it said "we now expect to achieve a production rate of 5,000 Model 3 vehicles per week by late Q1 2018". The company said it produced about 4,300 Model 3s a week, excluding planned shutdowns, and 5,300 in the final week of the quarter.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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