Tesla facing criminal investigation over Model 3 production, report says

Tesla facing criminal investigation over Model 3 production, report says

Tesla gave a statement on the FBI investigation to Fox's Charlie Gasparino, who posted it on Facebook.

The Model Three is a key part of Tesla's plan to expand from a niche player in the luxury segment to a vehicle maker with broader appeal.

Kallo also said that the article "largely recycled previously reported information" and that Baird found "certain aspects of the article suspect".

Tesla said in Friday's statement that investigators came to the company earlier this year and the company provided requested documents. We need more work, there is more work to do before in order to make a $35,000 auto and have it be positive gross margin. Although it has reached the 5,000 a week rate intermittently since this year's second half, Tesla said in its results letter to shareholders that production averaged 4,300 units a week in the third quarter.

Tesla and Musk already face a proposed class action shareholder lawsuit claiming that the company and its top executives made false statements about the readiness of the Model 3 for volume production.

Tesla spokesman Kamran Mumtaz has said that Tesla has not received a formal subpoena, request for testimony, or any other official process.

Yet last week Elon Musk, Tesla's quixotic founder, got the better of critics when the company revealed a surprise $312m quarterly profit thanks to increased sales of its "electric vehicle for the masses", the Model 3.

Thanks to the production push for the Model 3 over the summer, Tesla was able to rack up $312 million in profits for Q3.

The Model 3 has been plagued by delays to production and delivery, but with the help of volunteer drivers Tesla managed to send out 56,000 Model 3s to customers in the third quarter of 2018, compared to 18,449 in the previous three-month period.

Former employees received subpoenas, and Federal Bureau of Investigation agents are seeking to interview them, the source said. The company generated positive cash flow of $1.4 billion in the third quarter, compared to a negative $301 million at the same time a year ago. On a conference call with analysts, Musk said the company had delivered more cars in the past quarter than it did in all of 2016.

So far, Tesla has focused on more expensive versions of the model 3, but the entry-level $35k vehicle is still promised, which, we assume, will probably translate in to at least £35k when it does arrive in the UK.

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

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