Dealers' #1 source for auto industry news, content, coaching & analysis

DOJ further investigates Tesla for possible securities, wire fraud

The investigation may lead to criminal prosecution, civil penalties, or nothing at all.

According to an exclusive Reuters report, U.S. prosecutors are investigating whether Tesla committed securities or wire fraud by deceiving investors and customers about its self-driving capabilities.

The Securities and Exchange Commission (SEC) is investigating Tesla’s claims to investors regarding its driver-assistance technologies. The investigation, which is not proof of misconduct, may lead to criminal prosecution, civil penalties, or nothing at all. According to a source familiar with the matter, prosecutors are still reviewing the vast amount of files Tesla submitted in response to subpoenas, which has delayed their decision-making process.

Furthermore, regulators are investigating whether Tesla committed wire fraud by misleading customers about its driver-assistance technologies and whether it conducted securities fraud by misleading investors.

While Tesla’s Autopilot and Full Self-Driving systems can help with lane changes, braking, and steering, they are not entirely autonomous. The Justice Department is investigating additional remarks made by Musk and Tesla, which indicate that their vehicles are self-driving, despite Musk cautioning drivers to be prepared to take over when driving.

Following independent investigations by U.S. authorities into hundreds of collisions involving Tesla vehicles operating on Autopilot, including some fatalities, the firm conducted a widespread recall of its cars.

In October 2022, Reuters exclusively reported on the U.S. criminal probe into Tesla, and it is now the first to publish on the precise criminal responsibility federal prosecutors are investigating.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

Related Articles

Latest Articles

From our Publishing Partners