Tesla Model 3 production reportedly being investigated by the FBI

Shawn Knight

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Staff member

The Federal Bureau of Investigation is reportedly deepening a criminal investigation into Tesla to determine if the electric automaker misstated production information regarding its Model 3 sedan and thus, misled investors.

Sources reportedly familiar with the matter tell The Wall Street Journal that the investigation is looking back as far as early 2017.

The investigation is being led by the U.S. attorney’s office in San Francisco, the Journal notes, and has intensified in recent weeks.

“Earlier this year, Tesla received a voluntary request for documents from the Department of Justice about its public guidance for the Model 3 ramp and we were cooperative in responding to it,” a Tesla representative told Business Insider. “We have not received a subpoena, a request for testimony, or any other formal process, and there have been no additional document requests about this from the Department of Justice for months.”

“When we started the Model 3 production ramp, we were transparent about how difficult it would be,” the representative continued. "Ultimately, given difficulties that we did not foresee in this first-of-its-kind production ramp, it took us six months longer than we expected to meet our 5,000 unit per week guidance.”


Musk said on Twitter in July 2017 that it looked like they could produce 20,000 Model 3 cars per month by December. As Business Insider notes, however, Tesla only turned out 2,685 Model 3 vehicles that year.

News of the investigation comes just weeks after Tesla chief Elon Musk settled a separate suit with the Securities and Exchange Commission regarding tweets he made in August about taking the company private.

Lead image courtesy Bloomberg

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Uncle Al

Posts: 7,582   +6,096
It is sad that a man with such a creative mind ignores following practical rules. Some might attribute this to creativeness but a logical person will see it for what it is. Recklessness. Sadly, at his present course he will probably destroy all he has built without even realizing it until it is far too late ......
 

Littleczr

Posts: 441   +92
In the investing world TSLA is heavily shorted. There is also a chance some hedge fund manager pulled some strings to "get out of his short potions". TSLA reported better then expected earnings this past Wednesday. Going in to earnings Walls Street predicted a miss on production and placed short bets. TSLA has rallied 20% since then.
 
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CaptainTom

Posts: 414   +220
What a waste of resources. Tesla has been punished plenty by the market's reaction to every time Tesla missed production - you know, capitalism. They miss, their stock goes down.

Musk never promised anything, and this is just turning into a sore loser party.
 
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