The Justice Department is investigating Tesla for alleged securities and wire fraud in connection with its statements about autonomous vehicles, Reuters reports today, citing three sources familiar with the matter.
The investigation, which was first reported in October 2022 but has been ongoing since at least late 2021, involves federal prosecutors in Washington and San Francisco who are examining whether Tesla executives misled consumers, investors and regulators. by making unsupported claims about their autonomous capabilities. It appears investigators are focusing on specific charges against the company: securities fraud and wire fraud.
According to Reuters, the investigation is particularly examining statements made by Tesla CEO Elon Musk. For years, Musk has promised that fully autonomous Tesla vehicles are coming, although he has also admitted that he often sets overly optimistic timelines. Meanwhile, the company’s advanced driver-assist features, Autopilot and Full Self-Driving, do not make the vehicles autonomous and require drivers to keep their hands on the wheel and eyes on the road.
Tesla has been at the center of controversy for allowing its customers to beta test products that may not be ready for wide release, thus pushing the boundaries of safety. Tesla vehicles that use Autopilot have been subject to numerous recalls and have been involved in hundreds of accidents, some of them fatal. The most recent recall, which affected all Teslas sold to date, is now under new investigation for its failure to prevent driver misuse and correct flaws identified in the first recall.
Wire fraud involves deceiving customers in interstate communications, while securities fraud involves deceiving investors. The Securities and Exchange Commission is also investigating whether Tesla lied in its communications about autonomous vehicles, Reuters reports.
The Justice Department is also investigating the range claims of Tesla’s vehicles. Tesla customers have long complained that the company’s listed vehicle ranges often don’t match the reality of what the cars are capable of.
In its latest securities filing, Tesla acknowledged that it “regularly” receives subpoenas and requests for information from the SEC and the Department of Justice, some of which involve Autopilot and Full Self-Driving.
“To our knowledge, no government agency in any ongoing investigation has concluded that any crime has been committed,” the company said.