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Michael Hiltzik

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LA Times continues attack on Tesla using boilerplate risk disclosure as ‘admitting huge risk’ for the Model 3


Tesla and the LA Times have an interesting history, mainly revolving around a suspicious article from last year that misleadingly asserted that Elon Musk’s companies, especially Tesla, received $4.9 billion in subsidies. Last week, Musk revealed that he believes the article originated from the fossil fuel industry and was planted in the LA Times as a strategy to counter the IMF study that found that the fossil fuel industry was receiving the equivalent of ~$5 trillion in subsidy a year.

Now the LA Times fights back this week with a new hit piece on Tesla called “Tesla throws cold water on its own hype by admitting huge risks in building the Model 3“. The article used boilerplate risk disclosure statements from Tesla’s latest SEC filing to assert that the company is “admitting huge risk” for the Model 3 production ramp up.

Risk disclosure is something you’ll find in almost every quarterly or annual report of any publicly traded company like Tesla. It simply outlines to investors what the company sees as potential risks that could prevent them from executing their business plan. Expand