Automobile manufacturer Tesla Motors is dropping the use of some non-GAAP financial measures in its earnings releases after receiving several letters from the Securities and Exchange Commission criticizing the practice.
The SEC chided the Palo Alto, California-based electric car maker for employing “individually tailored” metrics in an earnings release this past August and has raised the issue with the company in four separate letters between mid-September and mid-October, according to The Wall Street Journal. In October, Tesla announced it would stop using non-GAAP measures in its releases.
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