Tesla Motors Inc. has come under fire from the Securities and Exchange Commission for using prohibited accounting metrics and sharing that information with investors, according to regulatory correspondence.
The SEC said Tesla in its August earnings release used “individually tailored” measurements when the electric-vehicle maker added back certain costs to revenue calculated under generally accepted accounting principles. While the SEC allows the use of some non-GAAP metrics, certain figures that adjust revenue are prohibited as detailed in the regulator’s guidelines from May 17...
...The SEC in this case is uncharacteristically specific about wanting to see Tesla’s revised disclosures in advance, Ms. Usvyatsky said. “The language is strong, it’s not ‘please, in future filings,’” Ms. Usvyatsky said...
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