Prosecutors are looking into whether Tesla misled investors and consumers about the capabilities of its self-driving technology. They’re checking if Tesla committed securities or wire fraud, which involves deceiving people through communications over the phone or the internet.
Tesla’s Autopilot and Full Self-Driving systems help with driving tasks but aren’t fully autonomous. Even though Tesla advises drivers to be ready to take control, investigators are concerned about other statements by Tesla and CEO Elon Musk suggesting the cars can drive themselves.
U.S. regulators have investigated several crashes, including fatal ones, involving Teslas with Autopilot. Reuters was the first to report the criminal probe into Tesla last year and now reveals the focus on possible fraud by federal prosecutors.
Investigators are checking if Tesla lied to consumers about its driver-assistance systems, which could be wire fraud. They’re also looking into whether Tesla deceived investors, possibly committing securities fraud.
The Securities and Exchange Commission (SEC) is also investigating Tesla’s claims about its driver-assistance systems, though the SEC didn’t comment. Tesla hasn’t responded to requests for comment.
The investigation isn’t proof of wrongdoing yet and could lead to criminal charges, fines, or no action. Prosecutors are reviewing a lot of documents Tesla provided in response to subpoenas.
It’s unclear which statements prosecutors are examining. Elon Musk has been promoting Tesla’s self-driving technology for years. Tesla’s website featured videos showing cars driving themselves, though a Tesla engineer admitted in a lawsuit that these videos didn’t accurately show the technology.
Musk has made bold claims about Tesla’s technology, saying it’s better than human drivers. But despite his promises, Tesla’s focus on self-driving hasn’t boosted sales as expected.
The legal experts caution that prosecutors need solid evidence to prove fraud. They’ll have to show that Tesla knowingly made false statements that harmed consumers or investors.
Tesla’s claims about its Autopilot and Full Self-Driving systems have raised concerns. Safety regulators and courts worry that Tesla’s marketing of these technologies has made drivers too reliant on them.
Recent incidents, including fatal crashes, have highlighted the risks of overestimating Tesla’s self-driving capabilities. Safety regulators have launched investigations into Tesla’s technology and its impact on road safety.
