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Tesla increases spending plan and releases new subpoena on Musk’s 2018 tweet

Tesla increases spending plan and releases new subpoena on Musk's 2018 tweet
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  • It now expects to spend $6 billion to $8 billion this year
  • Reveals a $170M fee related to holding bitcoin
  • Says the fair value of digital assets is worth $222 million

July 25 (Reuters) – Tesla Inc (TSLA.O) has increased its investment plan by $1 billion, the electric-car maker said in a regulatory filing Monday, which also disclosed a second subpoena related to Chief Executive Elon Musk’s 2018 go-private tweets.

The company now expects to spend between $6 billion and $8 billion this year and over the next two years, up from its previous spending plan of $5 billion to $7 billion, to ramp up production at its new plants in Texas and Berlin increase .

Musk had said last month that factories are “losing billions of dollars” as they struggle to ramp up production due to battery shortages and port problems in China. Continue reading

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Meanwhile, the most recent subpoena from the US Securities and Exchange Commission, dated June 13, has requested information on Musk’s compliance with his 2018 settlement with the regulator.

Musk had settled a lawsuit filed by the SEC over his go-private tweets by agreeing to have company lawyers pre-approve tweets containing material information about the company. Continue reading

The company said it will work with government agencies. The SEC declined comment. The regulator first subpoenaed Tesla in November in connection with the settlement.

The world’s richest person, who describes himself as a “free speech absolutist,” said in March his “funding secured” tweet was truthful, comparing himself to rapper Eminem when he tried to revoke his 2018 agreement with the SEC over the to throw heaps.

In June, he also appealed a judge’s refusal to end the agreement. Continue reading

The latest subpoena comes as Musk prepares for an October legal showdown with Twitter for dropping his $44 billion bid to buy the social media company. Continue reading

In June, regulators questioned Musk about a tweet expressing doubts about his takeover of Twitter due to concerns about the number of fake users and spam accounts. Continue reading

Separately, Tesla’s filing states that it converted about 75% of its bitcoin holdings into fiat currency, gaining $64 million and posting a $170 million depreciation in the first six months of 2022.

As of June 30, the fair market value of its digital assets was $222 million, the filing states. (https://bit.ly/3S1k4Bq)

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Reporting by Akash Sriram in Bengaluru; Edited by Arun Koyyur

Our standards: The Thomson Reuters Trust Policy.

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