Tesla Facing DOJ Probe

The SEC and the FBI are investigating Tesla’s production projections, according to a regulatory filing by the company dated Nov. 2. Apparently, FBI agents are looking at whether Tesla misled investors about production of its Model 3 sedans. DOJ prosecutors have asked for (but not subpoenaed) the same information. Tesla CEO Elon Musk says the problem is over-hyped. In an interview with Recode editor-at-large Kara Swisher, Musk said, “The amount of untruthful stuff that is written is unbelievable. Take that Wall Street Journal front-page article about, like, ‘The FBI is closing in.’ That is utterly false. That’s absurd. To print such a falsehood on the front page of a major newspaper is outrageous. Like, why are they even journalists? They’re terrible. Terrible people.” In a filing in which Tesla outlined plans to spend up to $6 billion on factories and equipment, the company said it routinely complies with requests for information from regulators and governmental authorities, including projections made for Model 3 production rates during 2017 and other public statements relating to Model 3 production.