Tesla was under federal investigation over Model 3, may still be, report says

Discussion in 'Tesla' started by terminaltrip421, Dec 16, 2017.

  1. terminaltrip421

    terminaltrip421 New Member

  2. Domenick

    Domenick Administrator Staff Member

    This seems like much ado without nothing. The only thing that might be questioned is the company's failure to disclose the probe to investors. While this may be a knock against its transparency, it's certainly not illegal. Perhaps if Tesla had reason to believe that the probe could end in some sort of enforcement action, then it might be legally required to disclose (not certain, I'm not a lawyer) the investigation.

    If it's not required to, and if just the news of an investigation could cause negative impacts, I doubt many companies would be willing to take these sorts of probes public.

    As a note, there are some good comments under the article, including this snippet from Stephan Pace, "Relevant line from p4 of the SEC document: "This investigation is a non-public, fact-finding inquiry."

    Pretty sure $TSLA-shorting Twitter is making some awesome pronouncements because of this report.
     
  3. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    Mercury News? Isn't that the same so-called "news" source which keeps publishing all those false accusations from the UAW against Tesla Inc.? If so, then that source is so biased that I wouldn't believe them if they reported it rained yesterday.

    As I suspected, terminaltrip421, what you are labeling a "federal investigation", is merely a SEC investigation into some of Tesla's financial affairs.

    A more balanced, rather less anti-Tesla report on the InsideEVs news website had this to say, in part:

    The probe began well over a year ago, in June of 2016. Apparently, the case was closed in May of 2017, however, Probes Reporter believes there may still be at least one SEC probe that has yet to be resolved.

    The initial probe was in regards to Model 3 reservation details, including any cancellations or refunds, as well as how Tesla planned to spend the money. It also involved a Tesla stock upgrade via Goldman Sachs that strangely came ahead of Tesla announcing a multi-billion dollar stock offering, which was underwritten by the same bank. Additionally, the probe requested Model 3 delivery timelines.
    Readers will please note that the SEC found no reason to reprimand or fine Tesla, and has already ended some parts of that investigation due to lack of any reason to continue.

    Full article here: "Official Documents Reveal SEC Probed Tesla Over Model 3 Reservations"
     
  4. terminaltrip421

    terminaltrip421 New Member

    what I labeled a federal report was labeled a federal report either in the article I linked or in the first one I read. and the sec is a governmental body so I'm not sure where your basis for disputing 'federal investigation' is coming from.

    insideevs not-so-coincidentally did not post their article until after I'd posted this thread.
     
  5. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    You made a federal case out of it.

    Literally.
     
  6. terminaltrip421

    terminaltrip421 New Member

    I don't remember the SEC following my lead but if you say so...
     

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