U.S. investigating Tesla for securities, wire fraud over self-driving claims

The U.S. Department of Justice (DOJ) is investigating whether Tesla committed securities and wire fraud with its claims about self-driving vehicles.

According to a report from Reuters (via The Verge), the DOJ is looking into statements made by Tesla CEO Elon Musk, who has repeatedly promised that Tesla vehicles would be capable of autonomous driving. In particular, Musk’s claims often point to Tesla achieving autonomous vehicles in the near future. For nearly a decade now, Musk has publicly promised that fully autonomous driving was just a year or two away.

The DOJ investigation was first reported in October 2022 but has been going since at least late 2021. We knew that federal prosecutors were examining whether the company misled customers, investors and regulators with self-driving claims, but the new details suggest investigators are now working toward specific charges.

According to Reuters, wire fraud involves deception in interstate communications — in the case of Tesla, misleading customers about the capabilities of its vehicles’ self-driving systems. Securities fraud involves deceiving investors. While the DOJ investigation isn’t evidence of wrongdoing, it could result in criminal charges, civil sanctions or no action. Reuters reports that prosecutors aren’t even close to deciding how to proceed with the probe.

This also isn’t the only investigation Tesla is currently facing. The DOJ is reportedly looking into the company’s vehicle range claims and there are also investigations into Tesla’s Autopilot self-driving system over whether a recall late last year addressed safety issues.

Source: Reuters Via: The Verge