U.S. securities regulator subpoenas Tesla on Model 3 production estimates

SAN FRANCISCO (Reuters) – Tesla Inc said on Friday it had received a subpoena from the U.S. Securities and Exchange Commission over forecasts it made about Model 3 production in 2017, a set of targets the electric vehicle company failed to hit on time.

The SEC issued subpoenas over “certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production,” Tesla said in a quarterly filing on Friday. A subpoena can compel a company to turn over materials that the requesting agency wants to review.

The SEC had also issued subpoenas in connection with Chief Executive Elon Musk’s previous statements that he was considering taking the company private, it said.

Both the SEC and U.S. Department of Justice are looking at whether Tesla misled investors about its business.

“To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred,” Tesla wrote in its filing.

The SEC declined to comment.

The company also said on Friday that 44 percent of its third-quarter net profit was from previously undisclosed regulatory credits.

Investors have been trying to ascertain if the worst is over for the Silicon Valley company amid the fallout from Musk’s short-lived plan in August to take the company private, and determine if Tesla has finally stabilized its rocky Model 3 production and can build the car at a profit.

Source: Reuters

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