Tesla Says SEC Issued Subpoena To Automaker Over Model 3 Production
And, of course, that “considering taking Tesla private” statement made by Elon Musk will be evaluated too.
Tesla has formally admitted to being issued a subpoena by the Securities and Exchange Commission (SEC). Apparently, the SEC will evaluate two potential issues:
- Musk’s statement of “considering taking Tesla private.”
- Projections for Model 3 production made in 2017 and other public statements connected to Model 3 production.
The Department of Justice has voluntarily asked Tesla to provide info related to these matters too, though no subpoena has been issued by the DOJ as of today.
Here’s the statement issued by Tesla:
We receive requests for information from regulators and governmental authorities, such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice (“DOJ”) and various state agencies. We routinely cooperate with such regulatory and governmental requests.
In particular, the SEC has issued subpoenas to Tesla in connection with (a) Mr. Musk’s prior statement that he was considering taking Tesla private and (b) certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production. The DOJ has also asked us to voluntarily provide it with information about each of these matters and is investigating.
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, and to our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred. As is our normal practice, we have been cooperating and will continue to cooperate with government authorities. We cannot predict the outcome or impact of any ongoing matters. Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows, and financial position.