US regulators subpoenaed Tesla production data, company says

DETROIT — U.S. securities investigators have subpoenaed information from Tesla about production forecasts for the Model 3 electric car that were made last year, the company acknowledged in a regulatory filing Friday.

The disclosure in Tesla’s quarterly financial report also says the Securities and Exchange Commission subpoena covered other public statements made about Model 3 production.

The filing adds that Tesla is co-operating with a Justice Department request for information about Model 3 forecasts.

It’s the first time Tesla has formally disclosed the SEC subpoena in a regulatory filing, but there have been widespread news reports about its investigation into production forecasts.

The Model 3 is a central part of Tesla’s plan to expand from a niche player in the luxury segment to a car maker with broader appeal. It’s also key to the company’s cash flow and pledge to make quarterly net profits into the future. In 2017 and this year, Tesla had trouble producing the cars, drawing a lawsuit from investors who said they were misled by CEO Elon Musk’s production targets.

Early last year the Palo Alto, California, company announced plans to produce up to 5,000 Model 3s a week by the end of 2017. But the company fell far short due to problems with automation at its Fremont, California, factory, making just 793 in the last week of 2017 and 2,700 for the entire year. It didn’t hit the 5,000-a-week target until June 2018.

The Wall Street Journal reported last month that the FBI is doing a criminal investigation into whether Tesla misled investors by overstating Model 3 production forecasts.

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

A company spokesman wouldn’t comment beyond the filing. Messages were left Friday seeking comment from the SEC and the Justice Department.

In September, Tesla settled a civil lawsuit by the SEC over tweets by Musk that funding was in place to take the company private. Musk and Tesla agreed to pay a combined $40 million without acknowledging or denying wrongdoing.

“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,” the company wrote in the filing.

But the company also says if the government decides to take enforcement action “there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows, and financial position.”

Last month Tesla reported a $311.5 million profit for the July-through-September period, its first quarterly profit in two years. 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.

A year ago, a group of shareholders sued the company in federal court alleging that it made false statements about Model 3 production and misled investors. The original complaint was dismissed but was refiled in September.

“We believe that the claims are without merit and intend to defend against this lawsuit vigorously,” the company said in its filing.

Tom Krisher, The Associated Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATE: Seven-year-old dies and her mother and two brothers are injured in trailer fire

Fire started shortly after 1 a.m. and took four hours to put out

Racist videos targeting Maskwacis are under investigation

Video images of what appears to be teenagers issuing racist and sexist… Continue reading

Red Deer County residents decry lack of public consultation over ‘enormous’ river water withdrawals

Noise, light, diesel emission complaints were made to the Alberta Energy Regulator

Woman no longer co-accused in 2019 Red Deer murder

Preliminary hearing of co-accused in murder began on Friday and resumes next month

Red Deer Mayor says city council’s advocacy isn’t over with shelter and hospital funding gains

Additional Crown prosecutors are still at the top of Tara Veer’s list

Fashion Fridays: Tammy’s big makeover

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Your community calendar

Feb. 19 A Liberation of Holland event is being held at the… Continue reading

Canadian-Indians worry for their families as riots break out in India

Naila Saeed could do nothing but worry from afar when rioters descended… Continue reading

Public health agency weighs stronger COVID-19 protection for front-line workers

OTTAWA — The Public Health Agency of Canada says it will consult… Continue reading

Ukraine pledges help for airline compensation for Iran plane crash victims

OTTAWA — Ukraine’s ambassador to Canada says his government will help Foreign… Continue reading

Saskatchewan premier won’t commit to fall election; cites national unrest

ESTEVAN, Sask. — Saskatchewan Premier Scott Moe says rail blockades and the… Continue reading

Suspect charged with first-degree murder in death of 13-year-old Quebec girl

ST-JEROME, Que. — Friends and family of a teenage girl whose body… Continue reading

Tories call on government to compensate dairy farmers ‘left behind’ in new NAFTA

OTTAWA — The Conservative opposition says the government must compensate dairy farmers… Continue reading

Red Deer Construction Association honours local builders

5th annual Commercial Construction Awards took place on Thursday evening

Most Read