US DOJ investigating Tesla over potential securities and wire fraud
The Department of Justice (DOJ) in the US, is currently investigating Tesla for potential securities and wire fraud, according to a Reuters report. The probe, which became public in October 2022, has been ongoing since late 2021. Federal prosecutors from Washington and San Francisco are leading the investigation, focusing on whether Tesla's executives made unfounded claims about its self-driving technology.
Musk's statements under DOJ's lens
The investigation is particularly examining the statements made by Tesla's CEO Elon Musk. Musk has repeatedly assured that fully autonomous Tesla cars are imminent. However, he has also confessed to being overly optimistic with his predictions. It should be noted that despite Tesla's advanced driver-assist features, Autopilot, and Full Self-Driving, the cars are not fully autonomous and drivers must remain alert and in control.
Tesla's safety practices and recalls
Tesla has faced criticism for pushing safety boundaries by allowing buyers, to beta-test products that may not be fully ready for widespread use. There have been several accidents involving Tesla vehicles using Autopilot, some resulting in fatalities. The company's most recent recall, which included all Teslas sold to date, is now under further investigation, due to its inability to prevent misuse by drivers and address issues identified in the initial recall.
DOJ and SEC probe Tesla's performance claims
Wire fraud involves misleading customers through interstate communications, while securities fraud involves deceiving investors. The Securities and Exchange Commission (SEC) is also investigating whether Tesla misrepresented information about its self-driving cars. Additionally, the DOJ is examining claims made by Tesla about its vehicle range, after several customers expressed concerns that the advertised vehicle ranges do not align with actual performance.
