Investigators at The Securities and Exchange Commission are investigating whether Tesla's SolarCity alternative energy unit disclosed appropriately how many customers canceled contracts for company systems, The Wall Street Jornal reported on Wednesday.
According to the report, the SEC declined to comment on the report.
The WSJ did quote a Solar City spokeswoman, who told the paper that the company, "has remained focused on reporting the quality of our
installed assets, not pre-install cancellation rates. Our growth projections have always been based on actual deployments."
Meanwhile, The Tesla (TSLA) - Get Report faithful and more than a few short sellers will gather near the closest television or computer screen this afternoon, hotly anticipating the company's latest earnings report expected to show increasing losses on higher sales.
Analysts polled btyFactSet Research expect the company to post an 82 cents a share loss, versus a 52 cent loss a year ago. Those same analysts expect Tesla saw revenue increase to $2.61 billion compared to $1.60 billion last year.
The Wall Street analysts who cover the electric car manufacturer are surprisingly evenly split in their estimates and ratings.
According to FactSet 30.4% of the analysts covering Tesla rate the shares a buy, 35% rate it a hold and 21.7% say sell it.
The shares fell 1.85% Wednesday afternoon, to just over $313.