Federal authorities scrutinizing Tesla over potential deception concerning autonomous driving assertions
Auto giant Tesla in hot water again with federal investigators scrutinizing claims surrounding its Autopilot and Full Self-Driving systems.
Looks like the Department of Justice (DOJ) is taking a closer look at Tesla, alleged for possible securities or wire fraud, according to a recent report by Reuters. The investigation centers around the accuracy of Tesla's claims regarding its self-driving technology and whether these claims misled both investors and consumers. The DOJ is reportedly examining statements made by Elon Musk that hinted at self-driving cars. This revelation marks the first time specific charges under investigation have been specified.
Investigators are allegedly exploring whether Tesla committed wire fraud, a deceptive practice involving interstate communications, by misrepresenting its driver-assistance systems to consumers. They're also looking into potential securities fraud, as they suspect Tesla may have cunningly deceived investors.
The DOJ and Securities and Exchange Commission declined to comment, while Tesla didn't immediately respond to a request for comment.
Not new to federal probes, Tesla previously dealt with scrutiny over its self-driving system. Last month, the National Highway Traffic Safety Administration decided to take a gander at the company over its recall of over 2 million vehicles equipped with Autopilot1. Since that recall, more than 20 Tesla vehicles utilizing Autopilot have been involved in crashes, according to the Verge. October 2020 saw the DOJ filing a subpoena seeking more details on Tesla's self-driving features.
Musk recently talked about his aspirations for more autonomous vehicles in Tesla's latest earnings call. For years, he's been championing the idea of Tesla vehicle owners transforming their cars into robotaxis when not in use. Musk recently gushed about a fleet of robotaxis merely months away. However, Musk is no stranger to grand claims, claiming a SpaceX mission to land on Mars will take place in the near future.
Tesla insists that its vehicles require driver supervision at all times. In the past, Musk expressed intentions to ditch those annoying notifications reminding drivers to keep their hands on the steering wheel while Autopilot is engaged2. However, a recent tweet from Musk made sure to emphasize the necessity of supervision when discussing Tesla's self-driving feature.
Recent developments could spell troubled waters for Tesla, with the potential for securities fraud lawsuits due to the company's misleading claims. The outcome of this could lead to further regulatory inquiries investigating Tesla's practices, and possibly raising broader questions for similar autonomous driving technologies in the market3.
- The Department of Justice (DOJ) is examining Tesla's tech and technology, specifically focusing on the accuracy of Tesla's claims regarding its self-driving capabilities, which are part of the Autopilot and Full Self-Driving systems.
- The investigation suggests that Tesla may have committed wire fraud by misrepresenting its driver-assistance systems to consumers, and also potentially engaged in securities fraud by deceiving investors.
- Elon Musk, Tesla's CEO, is under scrutiny for statements he made that hinted at self-driving cars, which could have been misleading.
- Recent developments, such as the allegations of misleading claims by Tesla, could lead to securities fraud lawsuits and further regulatory inquiries investigating Tesla's practices in the tech industry, potentially raising broader questions for similar autonomous driving technologies in the future.
