Tesla hit with SEC subpoena over Model 3 production targets

Tesla delivered an awesome earnings surprise. How come no one saw it coming

A woman walks past a Tesla showroom in Washington D.C

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

When the Model 3 was launched in 2017, the company was optimistic about quickly ramping up production of the highly anticipated model.

Musk, 47, also called the vehicle business "monumentally difficult" and repeated a point he's made in the past - that Tesla and Ford were the only US automakers to stay out of bankruptcy during the last recession. It's also key to the company's cash flow and pledge to make quarterly net profits into the future. The company ultimately made only just 2,425 in the entire fourth quarter.

The Elon Musk-led company said in a filing Friday that thus far, no government agency in ongoing investigations has concluded that any wrongdoing occurred. It didn't hit the 5,000-a-week target until June 2018.

Today's news follows on from recent reports in the Wall Street Journey that suggested Federal Bureau of Investigation agents were looking into whether or not Tesla misled investors about production of its Model 3 cars.

Ottawa hit by postal workers 24-hour walkout
Postal workers are off the job today (Wed) in a number of Vancouver Island locations. The two sides have been unable to reach a deal after ten months of negotiations.


A company spokesman wouldn't comment beyond the filing.

Taking a short break from working Boring Company's Hyperloop test tunnel and turning Tesla's into remote control cars, Elon Musk sat down with Recode's Kara Swisher for an hour-long interview.

The settlement required Tesla and Musk to pay a fine of $20 million each and for Musk to give up his chairman role for three years.

Tesla is already facing a proposed class action shareholder lawsuit claiming that the company and top executives made false statements about the readiness of the Model 3 for volume production.

Latest News