Electric carmaker Tesla Motors (NASDAQ:TSLA) has come under scrutiny from the Securities and Exchange Commission for using illegal accounting metrics and also sharing that information with shareholders, according to regulatory correspondence.
The SEC said in a letter that Tesla in its last earnings announcement used “individually tailored” measurements when the electric-vehicle maker added back certain costs to revenue measured under commonly recognized accounting values. While the SEC permits the use of some non-GAAP metrics, certain figures that change revenue are banned as detailed in the regulator’s recommendations from May 17.
These ongoing talks between the SEC and Tesla comprises four mails unveiled by the watchdog from mid-September to mid-October. The documents were publicized last week, almost 40 days after the discussion was settled. Usual conversations are made public 20 days after the matter is decided.
The SEC has adjudicated the matter resolved without taking any more action, according to an Oct. 12 letter the regulator sent to the company.
Meanwhile Tesla finally took over SolarCity in a deal valued at about $2 billion on Monday. Before to the shareholder decision, Company CEO and CO founder, Elon Musk announced several solar merchandises that are supposed to become an integral part of Tesla’s energy line. These products include roof shingles that look like a normal roof, but are entrenched with solar cells to produce energy, as well as an at-home battery, Powerwall 2.
Furthermore Tesla Motors (NASDAQ:TSLA) said to keep on installing larger solar array projects using its commercial battery, Powerpack 2.