Tesla CEO Elon Musk should be fined, SEC says

Tesla CEO Elon Musk should be fined, SEC says

While this number may be up 110 percent when compared to the same period past year, it still shows a substantial decline of 31 percent when compared to Q4 2018. The company delivered 50,900 Model 3 cars in the first quarter, down 20 percent from 63,359 the past three months, according to Tesla.

By comparison, the company said the National Highway Traffic Safety Administration (NHTSA) records one crash for every 492,000 miles for all vehicles.

Others responded with some more practical, if snide, advice... although a few of the "solutions" involved abandoning the $75,000 automobile.

Tesla's share price tumbled almost 9% after the electric carmaker warned on profits following a 31% drop in vehicle deliveries during the first quarter. In its statement to investors, Tesla said it planned to deliver between 360,000 and 400,000 vehicles this year. JPM was almost spot-on with estimated vehicles in transit, however, estimating 10,000 vehicles were still tied-up in logistics.

Nord LB analyst Frank Schwope called the numbers "more shocking than disappointing" and said there remain doubts whether Tesla could deliver 400,000 cars this year.

The carmaker reaffirmed its forecast to deliver between 360,000 and 400,000 vehicles this year, and said USA orders for the new Model 3 outpaced what the company was able to fulfill in the quarter.

It made produced 77,100 cars but said that due shipping to Europe and China for the first time, delivery rates across the United States were stunted.

Analyst Joseph Spak of RBC Capital Markets said that Model S and X deliveries, which totalled 12,100, were the lowest since the third quarter of 2015.


Musk was in federal court in NY for a hearing on charges of contempt requested by the SEC, the chief Wall Street regulator, which argued that Musk violated an October 2018 settle over securities fraud when he tweeted inaccurate production forecasts on February 19, 2019 despite agreeing to stop using Twitter to make statements about Tesla without the company's approval.

Tesla shares dropped below the $270 mark this week, Wall Street is now focusing closely on the $250 figure which Tesla shares have not closed below since March 2017.

"To us, this signals that the tax subsidy cut in the USA was a significant hit to these premium vehicles and/or Model 3 is having a bigger cannibalisation impact", Spak said in a note.

But the company warned its finances would take a hit amid the delivery challenges and price changes.

Live by the Tesla, come undone by the Tesla.

At first, Musk did not say much about the song when he announced its debut on Twitter.

Tesla ended previous year with about US$3.7 billion of cash and equivalents but had to pay off a US$920 million convertible bond in February.

The SEC told Judge Alison Nathan that Musk violated the deal by publishing a February tweet stating that Tesla would produce "around 500k" vehicles in 2019-without getting the tweet pre-approved by a Tesla attorney. But it said it ended the quarter with sufficient cash on hand.

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