US prosecutors are investigating whether Tesla, led by Elon Musk, may have committed securities or wire fraud by misrepresenting the capabilities of its self-driving electric vehicles to investors and consumers. The Justice Department is looking into allegations that Tesla deceived investors and consumers with false claims about its self-driving technology. The Securities and Exchange Commission is also examining Tesla’s statements about driver-assistance systems.
Tesla’s Autopilot and Full Self-Driving functions can assist with steering, braking, and lane changes but are not fully autonomous. Despite warnings from the company for drivers to remain alert, the DOJ is focusing on statements made by Tesla and Elon Musk that suggest their vehicles can operate without human intervention.
The investigation into Tesla’s Autopilot and Full Self-Driving systems has been ongoing, with prosecutors requesting information from the company. Tesla has provided extensive documentation, but no decision has been made yet as the Justice Department continues to analyze the data. The probe aims to determine if Tesla’s claims crossed the line from legal marketing to knowingly false statements that harmed consumers or investors.
Safety concerns regarding overselling self-driving technology and fatal accidents involving Tesla vehicles on Autopilot have raised alarm among safety regulators and courts. Recent incidents, including a fatal crash in Washington where a Tesla with Autopilot engaged struck and killed a motorcyclist, have highlighted the risks associated with relying too heavily on self-driving systems.
Tesla has come under fire for its messaging surrounding its self-driving technology, with criticisms directed at the brand names Autopilot and Full Self-Driving for potentially misleading customers about the capabilities of the systems. Shareholders have filed lawsuits against Tesla, alleging that they were misled about the true capabilities of the technology.
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