A group of Tesla Inc. shareholders, including several US state investment officials, called on the company's board to make sweeping changes to its governance to enhance oversight of Chief Executive Elon Musk.
Tesla acknowledged in a quarterly regulatory filing on Thursday that it has received a subpoena from the SEC asking about the company's forecasts the company made in 2017 for Model 3 production. The lawsuit cites repeated promises in 2017 that Tesla was "on track" to build 5,000 Model 3s per week by the end of that year at its factory in Fremont, California.
The Wall Street Journal reported last month that the FBI is doing a criminal investigation into whether Tesla misled investors by overstating Model 3 production forecasts. Messages were left Friday seeking comment from the SEC and the Justice Department.
Tesla said that none of the government agencies within the current probes have found any wrongdoing.
Tesla finally met that target in June of this year.
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According to independent polling site FiveThirtyEight , Democrats have a 15.9 percent chance of winning control of the Senate. The appearance was meant to boost the campaign of Matt Rosendale, the Republican state auditor challenging Democratic U.S.
Moreover, Musk says that "everyone" at Tesla was working 100-hour weeks.
Earlier, the businessman admitted that the company may have been too ambitious plans in the development Model X. Also the interior of the budget Model 3 has been simplified to reduce the production time of the auto. This prompted the CEO to tweet in August that he had the funding secured to buy out shareholders.
The SEC fined Tesla $20 million for the claim and fined Musk $20 million and ordered him to remove himself as Chairman of the company for three years.
Tesla reported a $312 million profit for its third quarter last week, and according to Musk, the company is "over the hump" in terms of reaching profitability.
This story has not been edited by Firstpost staff and is generated by auto-feed.