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CEO Elon Musk could come under scrutiny for questionable comments on Tesla production

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Experts believe that the discrepancy between Elon Musk’s statement at the conference and production figures that showed zero production could attract the attention of the United States Securities and Exchange Commission.


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Tesla CEO Elon Musk’s statement on Model S and Model X production raised questions

At a conference in January 2021, Tesla CEO Elon Musk said the company was producing new versions of its older models, the S sedan and the X large SUV, according to an ETAuto report. He also reportedly mentioned that the Plaid version of the Model S would be available in February. The electric carmaker’s big boss could come under scrutiny for his questionable comments he made at the Wall Street analysts’ conference regarding Tesla’s vehicle production.

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Recently, the company released delivery and production figures and neither model was produced in the quarter. Interestingly, Tesla produced over 1.8 lakh vehicles from January to March, including the Model 3 and the Model Y SUV. However, the company had only shipped 2,020 Model S / X units during the period. same period.

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Tesla produced over 1.8 lakh vehicles from January to March, including the Model 3 and the Model Y SUV.

Speaking at the conference, Elon Musk said: “We are very happy to announce that the new Model S and Model X Plaid are in production and will be delivered in February. So we were able to present the Model S and X Plaid – Model S will be delivered in February and Model X a little later. Model S Plaid, we are currently in production and will deliver next month. “

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Experts believe that the discrepancy between Elon Musk’s statement at the conference and production figures that showed zero production could attract the attention of the United States Securities and Exchange Commission. We know Musk has faced a lot of such discrepancies due to questionable comments he made on Twitter, which also affected the company’s stock price.

Anthony Sabino, a lawyer and professor of law at St. John’s University, said, “I think he might be in trouble with the SEC himself. These are pretty blunt statements. They are pretty unequivocal.”

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Tesla did not produce any Model S or Model X cars during the first quarter of 2021.

John C. Coffee Jr., a professor at Columbia University who heads the authority on securities law and corporate governance, said: “Musk’s assertion sounded like a statement of fact and not just to a projection of Tesla’s future production. If the SEC agrees, Coffee said, it could open an investigation. “

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He also mentioned that “Tesla could argue that Musk’s statement was only a prediction and not a statement of fact, and that something later happened to change that prediction. If regulators are to Granted, Musk’s statement would be protected by Tesla’s standard warnings regarding the uncertainty of forward-looking statements. “

Jacob Frenkel, former SEC law enforcement attorney, said: “You cannot dismiss a false statement or failure to disclose a material fact. Otherwise, it would give corporate disclosures no credibility. . “

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