Tesla Being Investigated For Securities and Wire Fraud For Self-Driving Claims

| Updated on June 17, 2024
tesla Being Investigated

The Department of Justice is looking into whether Tesla has committed any securities or wire fraud around its self-driving car claims. 

The investigation which was first reported in October 2022 but has been going on since late 2021 involves many federal prosecutors from Washington and San Francisco who are examining whether Tesla execs misled consumers, investors, and regulators.

They are checking on the unsupported claims about whether the cars were really capable of self-driving when they were sold with the same promise or now. 

Now it looks like the investigators are zeroing in on the specific charges against the company about securities and wire fraud.

According to Reuters, the probe is looking into statements made by the CEO, Elon Musk. He has previously promised fully autonomous Tesla vehicles that are just around the corner, while also admitting that he often sets optimistic timelines.

Tesla has repeatedly pushed the boundaries of safety by allowing its customers to beta test products that may not be ready for wide release. Tesla vehicles using Autopilot have been subject to numerous recalls and involved in hundreds of crashes over the years, dozens of which have been fatal. 

The most recent recall, which applied to every single Tesla sold to date, has now come under a new investigation for its failure to prevent driver misuse and correct the flaws identified in the first recall.

Charu Thakur