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

Tesla Inc, an American automobile company that specializes in electric cars announced this Friday that it has received a subpoena from the Securities and Exchange Commission of the United States. The subpoena is because of the failed targets over the forecasts which the company had made related to the production of Model 3 the previous year.

The authority that subpoenas posses is that it can urge a company the documents that the agency is requesting to review. The Securities and Exchange Commission of the United States has also issued some subpoenas in relation to the statements that the CEO of Tesla Inc., Elon Musk had made in which he had stated that he was considering of taking over the company.

The Department of Justice of the United States along with the Securities and Exchange Commission is investigating into the matter to check that whether the company misled its investors and public about its business.


Tesla stated in its filings that in the knowledge of the company, no investigation as yet have concluded them to be guilty of any wrongdoings.

The company also stated that 44 percent of the net profits generated in the third quarter of the current fiscal year is due to the undisclosed regulatory credits of the previous year. Tesla was able to meet that target this year in June.

A spokesperson from Tesla has told Reuters that the company had received a voluntary request last week from the Department of Justice of the United States regarding to the forecasts production of Model 3 but not a subpoena.

The company has denied all the claims and has stated that it had disclosed the production bottlenecks only when they were identified pointing to the statement of the CEO that the company was not in a healthy state in 2017.

Source: Reuters, USAtoday

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Written by Ketakee Srivastava

I am an amateur content writer, who is currently pursuing a Masters in Finance from ICFAI Business School. In this highly volatile Business Market, I find no better way to keep myself updated than to write about it and reflect my own thoughts as words.

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