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

SAN FRANCISCO (Reuters) – Tesla Inc. (Reuters) – Tesla, Inc. (Reuters) – The United States, the United States, said in a statement.

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

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

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

Tesla wrote in its filing. "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 previously undisclosed regulatory credits.

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

Following the launch of the Model 3 last year, the Tesla has been aggressively producing new targets for the new vehicle, blaming "manufacturing bottlenecks."

Jay Dublow, a partner with Pepper Hamilton LLP and a former chief executive officer in the SEC's enforcement division, said:

"It is possible for another SEC enforcement action down the road if it turns out that the projections were purposefully or recklessly made without a basis," Dublow said.

Tesla is here a proposed action shareholder lawsuit claiming the company and top executives made false statements about the readiness of the Model 3 for volume production. The lawsuits are promised in 2017. They are "on track" to build 5,000 Model in their factory in Fremont, California.

Tesla finally puts it in this year.

Tesla has denied the claims, saying it has been disclosed to the production of bottlenecks, and pointing to Musk's public statements that the company was undergoing a period of "production hell" in 2017.

Tesla spokesperson told Reuters last week that the company had received a voluntary request from the US Department of Justice for documents related to Model 3 production forecasts, but had not received a subpoena.

ZERO EMISSION CREDITS

Tesla has been in the wake of Musk's tweets that he had "funding secured" for a deal, later scuttled, to take Tesla private. Musk and Tesla settled with the SEC in September after the agency sued for fraud.

The settlement required Tesla and Musk to pay a fine $ 20 million each.

Last week, investors were cheered by the company's third-quarter profit margin, and positive cash flow, which felt shares climbing.

The company said $ 52 million in "zero emission vehicle" credit sales. It did not say that it was another $ 137 million in regulatory credits, which contributed to nearly half of the profit.

Tesla also said that it is planned to start with 3,000 models in the initial phase of its Gigafactory 3, to reduce the impact of tariffs.

Model S and Model X sales in China will likely be further hurt by the Chinese government on U.S.-manufactured vehicles, it said.

Tesla shares closed up less than half a percent to $ 346.41 on Friday.