U.S. SEC Subpoenas Tesla On Model 3 Production Targets

(RTTNews) - Tesla Inc. (TSLA) said that the U.S. Securities and Exchange Commission has issued subpoenas to the company in connection with Chief Executive officer Elon Musk's prior statement that he was considering taking Tesla private and certain projections that it made for Model 3 production rates during 2017 and other public statements relating to Model 3 production.

Tesla said, "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."

Tesla said it 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 business, results of operation, prospects, cash flows, and financial position.

Tesla said, "We are also subject to various other legal proceedings and claims that arise from the normal course of business activities. If an unfavorable ruling or development were to occur, there exists the possibility of a material adverse impact on our business, results of operations, prospects, cash flows, financial position and brand"