SEC Were Investigating Tesla Over Model 3 Sales

It has emerged that the Securities and Exchange Commission were investigating Tesla and its plans to sell the Model 3, information which was never provided to investors.

Legal documents obtained by Probes Reporter under a Freedom of Information Act request reveal that Tesla was being investigated between June 2016 and May 2017.

The Detroit News
asserts that the investigation was triggered following a move from Goldman Sachs on May 18, 2016 to upgrade Tesla on the same day it and Morgan Stanley underwrote a $2 billion Tesla stock offering. Upon looking into the electric automaker, the SEC discovered that it “may have been or may be making false statements of material fact or failing to disclose material factors concerning the Company’s Model 3 vehicle.”

As part of the investigation, Tesla was required to produce documents about Model 3 reservations, cancellations, and deposits. Additionally, documents detailing how Tesla had used or planned to use the deposit money was required. Furthermore, the SEC demanded the names and credit card numbers of all customers who’d placed an order on the Model 3.

The SEC investigation into Tesla ended on May 2017 without action taken. However, the SEC said that this decision “must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff’s investigation.”

Probes Reporter says the SEC has blocked access to other records on Tesla, indicating that “there is at least one other unresolved SEC probe” into Tesla.

PHOTO GALLERY

  • lagunas3ca

    SEC should probably be more concerned with Faraday Future’s antics even though they won’t exist much longer.

    • Dennis James

      Are you concerned by an ant ?

      • lagunas3ca

        No, just fraud.

  • Six_Tymes

    so, the SEC is finally doing their job…

  • pjl35

    WAS…not were. WAS. This is basic grammar, guys.

    • Auf Wiedersehen

      These guys make it up as they go and or it was likely scraped from another site and the error continued.

    • FoxJ30

      Actually, depending on where you’re from, both are correct.

      US English treats an organization as a single entity, therefore “the SEC was…” would be correct.
      British English treats an organization as a group of people, thus “the SEC were…” would be correct.
      We all assume the author’s American, but he may just as easily be from any other English speaking nation, most of which speak the Queen’s English.

      • pjl35

        fine; but since we’re talking about a U.S. government entity going after a U.S. company…maybe let’s stick to that grammar.

        • Jerry Hightower

          Wee al mak mistacks, git ovur itt!

    • Jerry Hightower

      R U the grammer police?

      • pjl35

        Yes I am, would you like to see my badge?

      • pjl35

        *grammar

  • jsz00

    Elon cooking the books again

    • BGM

      Silence unbeliever! How dare you question His Magnificence?! Just for that, you’ll be left behind when we go to Mars on the Elon 1 Spaceship which is coming very soon…

      • kachuks

        Mars? That will be a 12 minute ride on the hyperloop by the end of the next decade. I think you meant Rigel 7.

  • robotlogic

    Maybe the SEC should take a look at Elio motors first. They are the kings
    of the pre-order deposit scammers.

    • Six_Tymes

      hmmm

    • brn

      Much like 90% of Kickstarter campaigns.

      What a minute… Did Elio start on Kickstarter?

  • LWOAP

    I wonder what else Tesla has gotten itself involved in? Something is going on behind closed doors and I guarantee it’s nothing good.

  • Auf Wiedersehen

    “the SEC demanded the names and credit card numbers of all customers who’d placed an order”

    Oh yes, a large, high profile government agency is who I would want MY name and credit card number on file with. Cause you know, they are so secure and hack proof.

  • Jørn-tommy Skjellnes

    well the tesla model s and model x sells like candy in norway,tesla sells more than ford,audi,suzuki,renault to name som of the cars beaten by tesla.

  • S3XY

    k.

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