Tesla Whistleblower Ups Ante, Making a Formal Complaint With the SEC

Bloomberg described Tesla's decision as a "bold move", since the auto company has been "burning through billions of dollars as it's struggled to ramp up manufacturing of the Model 3 sedan".

Months after the company imposed the goal of producing 5,000 Model 3 vehicles per month, Tesla's CEO and founder Elon Musk congratulated factory workers for finally meeting the company's own target at the end of June.

Tesla is the first US carmaker to trigger the reduced federal tax credit for electric vehicles, a phaseout triggered by it sales of 200,000 vehicles in the U.S. China retaliated by imposing an nearly identical tariff, meaning Chinese consumers who want to own a Tesla will have to spend an additional $30,000. "We hope it will be completed very soon".

Tesla says an agreement signed recently with a Shanghai city government agency calls for construction to start in the near future.

Following months of tension, start-stop negotiations and some Chinese concessions, the United States on Friday pulled the trigger on 25 per cent duties on about USD34 billion in annual imports of Chinese machinery, electronics and high-tech equipment, including autos, computer hard drives and LEDs.

Tesla's vehicle purchase incentives web page on Thursday morning reported that the wind-down of incentives for buyers of its cars has begun. As Tesla wrote in an annual report filed with the US Securities and Exchange Committee in February, its customers get the full $7,500. The Model 3 was created to be Tesla's first mass-market vehicle, meant to broaden the company's customer base beyond the luxury segment and increase the rate of electric-vehicle adoption.

"I think that you'll see something similar to what they did in Nevada, with a partner like Panasonic", said Mr Kallo, referring to the gigafactory that Tesla and its Japanese battery-cell supplier operate along near Reno. But the joint statement described the plant as a Tesla "wholly owned Gigafactory".

For Tesla, speculation in recent weeks about whether Elon Musk's EV maker has or hasn't reached that figure was almost as ripe as whether it would be able to reach the 5,000-per-week Model 3 production target.

It's never been a secret that the Model 3 has always been the lynchpin in Tesla's plan to fundamentally shake up the auto industry and kick the EV revolution into high gear.

"If foreign automakers develop and build electric vehicles in the country, its domestic industry has the chance to absorb new, advanced technologies, helping China transform from a mere market into an automaking heavyweight", a report added.

  • Wendy Palmer