Please create an account to participate in the Slashdot moderation system

 



Forgot your password?
typodupeerror
×
Crime Transportation Businesses Government United States

Tesla Faces FBI Probe Over Model 3 Production Numbers (cnbc.com) 143

A new report from The Wall Street Journal says the FBI is reviewing Tesla's Model 3 production numbers as part of an ongoing criminal probe into whether the company misled investors. "Federal agents are reviewing Tesla's stated Model 3 numbers dating back to early 2017, the Journal reports, citing unnamed sources," CNBC reports. From the report: Tesla had previously said it provided documents to the Department of Justice regarding CEO Elon Musk's controversial take-private tweet -- a blunder that ultimately cost Tesla and Musk a combined $40 million in fraud settlement fees. Now Tesla says it also provided information to the Department of Justice regarding Musk's public statements regarding production numbers of its Model 3 sedan. Tesla says the company has not received "a subpoena, a request for testimony, or any other formal process," but the Journal reported Friday that former Tesla employees have received subpoenas and requests for testimony.
This discussion has been archived. No new comments can be posted.

Tesla Faces FBI Probe Over Model 3 Production Numbers

Comments Filter:
  • ... the value of political contributions and tolerating Trump's 'Business' panel.

    https://www.theguardian.com/te... [theguardian.com]

    • So... they pulled out too early?

      Giggity.

    • Why? This is not Nazi Germany. Well, not yet.
    • by Snuggles ( 74048 )

      Just like in Soviet States.

  • by blazerw ( 47739 ) on Friday October 26, 2018 @05:05PM (#57542759)
    Sounds like "fake news" from shorts if they're asking about Model 3 production numbers before Model 3 production started. According to Wikipedia, first Model 3 came off line in July 2017. While that is 2017 and it isn't late 2017, it's definitely not early 2017.
    https://en.wikipedia.org/wiki/... [wikipedia.org]
    • In skimming the CNBC article for an answer, it looks like the issue is regarding production goals, rather than production itself. I.e. did they knowingly make unrealistic claims regarding their production goals. So, not exactly fake news, but definitely not a clear picture of what's going on from the snippet in the summary.

      • In any company with leading edge tech or new products any production goals are tentative. Intel has issues with production yields with new processes for example and quite often the yield rate is only told a long time after the fact as the information can be used by competitors and determines price signals.

        • And knowingly lying about them can get you into serious shit.

        • There's a big difference between announcing a reachable goal but not reaching it and actually announcing a goal you KNOW in advance is unreachable.

  • Since when is a profit on stock s a right?

  • by Anonymous Coward

    This sounds more like it would be the jurisdiction of the SEC, unless they found potential criminal activity beyond just allegedly misleading investors.

    • This sounds more like it would be the jurisdiction of the SEC, unless they found potential criminal activity beyond just allegedly misleading investors.

      It pays to have friends in low places.

    • It is the jurisdiction of BOTH. SEC does any civil actions required, the FBI/DOJ conduct any criminal investigations and charges.
  • Market Manipulation (Score:5, Interesting)

    by seoras ( 147590 ) on Friday October 26, 2018 @08:21PM (#57543481)

    Has there ever been a company which has had to endure as much media sponsored market manipulation as Tesla?
    Two days ago the news headline [yahoo.com] was:
    "Tesla reports surprise profit, stock surges. Tesla reported its third-ever profit in its eight years as a public company. This exceeded average analyst expectations of losses of 15 cents per share on revenue of $6.32 billion."
    Today more speculative drama chipping away at its integrity and success.

    Did that "stock surge" burn someone? Did someone think "oh dear, I was wrong, I should have gotten in earlier" or are the shorties still dreaming they can topple it?

    • by Octorian ( 14086 )

      This is par for the course when a stock is heavily shorted. All good news must be followed by damning news, so that the stock price follows a rollercoaster pattern. I've seen it happen to other companies before, almost as if the shorters are actively trying (via the power of the press) to induce failure in the company (regardless of how the actual business is doing at any given moment).

    • by AmiMoJo ( 196126 )

      That's what happens when your CEO posts lots of internal information on Twitter. Musk is the one making public promises about production targets, forthcoming features and the like. Most companies keep quiet about such things until they are ready to put out a press release after the numbers have been met or the product is on sale.

      • by Ecuador ( 740021 )

        That's what happens when your CEO posts lots of internal information on Twitter. Musk is the one making public promises about production targets, forthcoming features and the like.

        His companies have been the most consistently delivering companies in the "pioneering technology" area that I've ever seen. As you say, "he makes promises about production targets", is there any doubt those are not his targets? In fact he is widely known for setting too high targets, which is why he usually hits them later than he expects. It is not actually illegal to be an optimist as far as I know.
        So it seems that this is just the usual FUD he gets hit with, with huge interests against him, as they are l

  • Manufacturers money they may be loosing is worth it for them, if for anything else but the entertainment value of Musk's' new tech he develops. seriously couldn't say this about anyone else.
  • by 140Mandak262Jamuna ( 970587 ) on Friday October 26, 2018 @09:26PM (#57543675) Journal
    Tesla never releases any official production number. It is so tight with information about production. What little it reveals is in the quarterly earnings call. Bloomberg actually built an "estimator" for the production using some crowdsourced info gathering.

    It does not release monthly figures, it does not give country wide break up...

    • by beckett ( 27524 )
      production can be inferred from customers reporting VINs.
      • by 140Mandak262Jamuna ( 970587 ) on Saturday October 27, 2018 @07:29AM (#57544601) Journal
        You can infer production rate. That is speculation on your part. Why would they investigate Tesla for your speculation?

        It is illegal if they made X cars but reported X+Y cars.

        It would be illegal to give an inflated forecast about production rate knowingly. It would be very hard to prove Tesla knew it is going to miss production deadlines and still misrepresented the issue. With all that talk about production hell, and sleeping in the factory etc, they made no effort to conceal the problems they had in production.

  • by EnsilZah ( 575600 ) <EnsilZah@@@Gmail...com> on Saturday October 27, 2018 @01:53AM (#57544059)

    The story is old news and Tesla made a statement they haven't received any subpoenas from the DOJ.

    The story was conveniently (for some) released as the stock was hitting +8% in a bear market, and it promptly dropped to around 0% for the day.
    After about 20 minutes the market realized the story was bullshit and the stock continued to rise 5% by closing time, but the doubt has been sowed and momentum slowed.

  • Elon Musk stated that they had a goal and expectation of production numbers and profitability, however, many investors did not believe it to be possible. They pulled out....

    Elon Musk and Tesla achieved, and even exceeded their stated goals. So the investors who pulled out, basically are crying cause they lost thousands by pulling out too soon. And so now Elon and Tesla are being investigated for providing accurate estimates regarding future metrics.

    It almost sounds like the real issue, wasn't that Elon s

Ocean: A body of water occupying about two-thirds of a world made for man -- who has no gills. -- Ambrose Bierce

Working...