By Andrew J. Hawkins , transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeare

Tesla is being investigated for securities and wire fraud for self-driving claims

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2024-05-08 14:30:05

By Andrew J. Hawkins , transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

The Department of Justice is looking into whether Tesla committed securities and wire fraud around its self-driving vehicle claims, Reuters reports today, citing three sources familiar with the matter.

The investigation, which was first reported in October 2022 but has been going on 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 its autonomous capabilities. Now, it appears that investigators are zeroing in on specific charges against the company: securities and wire fraud.

According to Reuters, the probe is looking into statements made by Tesla CEO Elon Musk in particular. For years, Musk has been promising fully autonomous Tesla vehicles are just around the corner — while also admitting 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 steering wheel and eyes on the road.