Shares of electric carmaker Tesla Motors (TSLA) have fallen this week after The Wall Street Journal reported that the Securities and Exchange Commission criticized the company for using prohibited accounting practices.
The SEC denounced Tesla Motors for "tailoring" particular measurements in its second-quarter earnings report, which it released in August, according to recently released correspondence between Elon Musk's company and the commission.
Tesla Motors implemented an accounting trick that made the company appear to have registered more profits than it actually had for the quarter, according to the SEC.
This isn't a good time to invest in Tesla Motors. The company's shares fell slightly in Wednesday trading.