The electric car pioneer Tesla has also attracted the attention of the US Securities and Exchange Commission because of the production problems of the mass market model Model 3, according to a press release.
The SEC initiated investigations in the past year, the Wall Street Journal (Friday) reported, citing informed individuals. To this end, the stock market overseers had, inter alia, summoned a supplier court. The SEC did not want to speak to the newspaper about the information.
On the eve of the newspaper, The Wall Street Journal reported that the Securities and Exchange Commission (SEC) of the United States is conducting an in-depth investigation into Tesla Inc. because of the statements of the head of the company Ilona Mask on the plans of repurchasing the company’s shares. Rule SEC 14e-8 prohibits public companies from announcing the sale or purchase of securities if their management does not actually plan to do so or does not have the funds to do so. Tesla boss Elon Musk had repeatedly ambitious targets for the production of the first intended for the mass market Tesla car – and had to postpone her because of problems in ramping up production again and again. Tesla and its managers could be in for trouble if investors were duped into the reasons for the delays or their extent.
At the end of July, the weekly production target of 5,000 cars could only be achieved with bending and breaking, for which an entire assembly line was additionally flown in. From 7,000 pieces per week, Musk believes that it can operate profitably over the long term. By the end of August, the star entrepreneur wants to let 6000 runs off the assembly line every week. Hundreds of thousands have reserved the car.
At the moment, Musk, in particular, is under heavy attack with his Twitter-published plans to take the automaker off the stock exchange. According to US media reports, the SEC has summoned all of Tesla’s board members.
In particular, it should be clarified whether Musk told the truth by announcing that funding for such a multi-billion dollar venture has been secured. The comments of the belligerent Tesla boss had driven the share price up sharply. Musk is particularly short-sellers who speculate on a sinking stock price, a thorn in the eye.