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Tesla confirms SEC, DOJ investigating Model 3 production projections

By
Nicholas Sakelaris
Tesla is under fire again, confirming Friday that the federal government is looking into Model 3 production projections. Photo by Joe Marino-Bill Cantrell/UPI
Tesla is under fire again, confirming Friday that the federal government is looking into Model 3 production projections. Photo by Joe Marino-Bill Cantrell/UPI | License Photo

Nov. 2 (UPI) -- Tesla confirmed Friday that the Securities and Exchange Commission and Justice Department are investigating production projections for the Model 3.

A regulatory filing explained that SEC has subpoenaed projections for Model 3 production in 2017.

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The assumption is that CEO Elon Musk possibly misled investors about the production of the more affordable electric car as production projections have consistently fallen short. The investigation also includes public statements about Model 3 production.

This is separate from the SEC's investigation into Musk's tweet that he would take the company private. Tesla reached a settlement with the SEC last month that involved Musk stepping down as chairman and paying a $20 million fine.

In an interview with Recode, Musk blasted the media, saying his respect for them has dropped dramatically.

"The amount of untruthful stuff that is written is unbelievable. Take that Wall Street Journal front-page article about, like, 'The FBI is closing in,'" Musk said. "That is utterly false. That's absurd. To print such a falsehood on the front page of a major newspaper is outrageous. Like, why are they even journalists? They're terrible. Terrible people."

The Wall Street Journal article telegraphed the federal probe into Model 3 projections on Monday, five days before it was confirmed in the regulatory filing.

Shares of Tesla fell $1.78 in mid-day trading, down 0.5 percent.

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