FBI conducting criminal probe into Tesla

Under federal probe Tesla shares documents with DOJ about Model 3 production

Tesla Model 3

"We expect to produce and sell even more Model 3s" in the fourth quarter, Musk told analysts.

Tesla gave a statement on the FBI investigation to Fox's Charlie Gasparino, who posted it on Facebook. The European launch of the Model 3 is expected in the first half of 2019. It fell far short, making just 793 in the last week and 2,700 for all of 2017. But a few days before the vehicle's assembly began, Musk predicted the company could hit a monthly target of 20,000 units by the end of the year in a July tweet.

Agents are probing whether Tesla "misstated information about production" and misled investors starting in 2017 about its ability to meet manufacturing goals, the Journal report says.

The Department of Justice sent Tesla a voluntary request for documents on the Model 3 ramp public guidance, said Tesla spokesperson in a statement.

On suspicion of Federal service, the management of the company have provided incorrect information to its investors on the schedule of production of a new electric vehicle Model 3. Tesla should have 100,000 cars per year in the fourth quarter which would be 400,000 cars per year annually.

The probe, which has been under way since earlier this year, concerns whether the automaker told investors it was on track with targets for the closely-watched build-out of the Model 3 vehicle despite knowing it could not meet such goals, The Wall Street Journal reported on Friday.

IBM Is Buying Red Hat for $34 Billion in Blockbuster Software Deal
Microsoft completed its $7.5 billion acquisition of open source software company GitHub just two days ago. A logo of IBM is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018.

Previously, Tesla had received a voluntary request for documents from the Federal Bureau of Investigation.

Earlier this month, a US judge approved Tesla and Musk's $40 million settlement with the Securities and Exchange Commission over a probe of Musk's August tweet citing funding being secured to take the company private.

The FBI is reviewing Tesla's Model 3 production numbers as a part of a deepening criminal probe into the company, according to a report.

Musk pledged in the summer of 2017 that the company would be churning out 5,000 cars per week by the end of past year. The company generated positive cash flow of $1.4 billion in the third quarter, compared to a negative $301 million at the same time previous year.

Tesla is now generating cash, not consuming it and has largely managed to silence critics for the time being.

Latest News