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03 November 2018, 04:25 | Kelvin Horton
Tesla Model 3 sedan is displayed during its launch in Hawthorne Calif
The electric-car maker said it continues to push to increase overall Model 3 production to about 10,000 units per week.
Elon Musk, following his short-lived plan to take Tesla Inc. private, said he now "probably" wouldn't accept an investment from Saudi Arabia's government after the death of dissident journalist Jamal Khashoggi.
Department of Justice prosecutors have also asked for the company to provide information about production numbers, according to Tesla, although it stopped short of issuing a formal subpoena.
When the Model 3 was launched in 2017, the company was optimistic about quickly ramping up production of the highly anticipated model.
United States regulators have demanded Tesla hand over information as part of a criminal investigation into whether Elon Musk's electric auto maker misled investors over its production figures.
US securities investigators have subpoenaed information from Tesla about production forecasts for the Model 3 electric vehicle that were made past year, the company acknowledged in a regulatory filing Friday. It didn't hit the 5,000-a-week target until June 2018.
A year ago, a group of shareholders sued the company in federal court alleging that it made false statements about Model 3 production and misled investors. Musk and Tesla settled with the SEC in September after the agency sued for fraud. Musk and Tesla agreed to pay a combined $40 million without acknowledging or denying wrongdoing.
Last week, investors were cheered by the company's third-quarter net profit, wider margins and positive cash flow, which sent shares climbing. It did not say at the time that it had gained another $137 million in regulatory credits, which contributed to almost half of the profit.
Model S and Model X sales in China will likely continue to be hurt by recently increased tariffs imposed by the Chinese government on US -manufactured vehicles, it said.
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