• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 20 mins China's Blueprint For Global Power
  • 9 mins World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 5 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 5 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 2 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 1 hour Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 5 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 7 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 7 hours Why don't the other GOP candidates get mention?
  • 4 hours Deepwater GOM Project Claims Industry First
  • 5 hours Idiotic Environmental Predictions
  • 6 hours PETROLEUM for humanity 

SEC Tesla Probe Not New: Report

Elon Musk Tesla

The Securities and Exchange Commission has been investigating Tesla for misleading statements about its Model 3 for months, unnamed sources in the know told the Wall Street Journal, long before CEO Elon Musk attracted the watchdog’s attention with his tweet about taking Tesla private.

At the time, the SEC subpoenaed a parts supplier working with the electric car maker, one of the sources said. Another adds that now the SEC has also subpoenaed members of Tesla’s board of directors to try and find out if and how much they knew about Musk’s plans for the company.

The WSJ recalls that Elon Musk has made bold predictions for Model 3 production, but real production numbers fell short of these until this June, when Tesla finally ramped up the weekly production of the Model 3 to 5,000. Last year, the company only made 2,700 Model 3s, compared with 20,000 predicted by Musk last year. Still, the 20,000 figure was much lower than a previous estimate of 200,000 Model 3s to be made in 2017.

The delays in the ramp-up were attributed to a range of problems with production capacity and suppliers. As far as the SEC is concerned, the question is whether Musk and others from the company’s management misled shareholders about the cause of the delays or their extent.

Meanwhile, regulators are also looking into the “funding secured” affair after Musk tweeted that he is ready to take Tesla private at a price of US$420 a share and he has already found the money to do so. Later it emerged that the Tesla CEO has been in discussions about taking the company private with the Saudi sovereign investment fund. Besides the SEC probe, Musk is facing a reputation stain as a result of his readiness to use Saudi oil money to take Tesla private.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play