U.S. Probe On Tesla Focuses On Securities And Wire Fraud

US prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities, three people familiar with the matter told Mike Spector and Chris Prentice of Reuters.

US regulators have separately investigated hundreds of crashes, including fatal ones, that have occurred in Teslas with Autopilot engaged.

Tesla’s Autopilot and Full Self-Driving systems assist with steering, braking, and lane changes - but are not fully autonomous.

While Tesla has warned drivers to stay ready to take over driving, the Justice Department is examining other statements by Tesla and Chief Executive Elon Musk suggesting its cars can drive themselves.

US regulators have separately investigated hundreds of crashes, including fatal ones, that have occurred in Teslas with Autopilot engaged, resulting in a mass recall by the automaker.

Reuters exclusively reported the U.S. criminal investigation into Tesla in October 2022, and is now the first to report the specific criminal liability federal prosecutors are examining.

Probers are assessing whether Tesla committed wire fraud, which involves deception in interstate communications, by misleading consumers about its driver-assistance systems, the sources said.

They are also examining whether Tesla committed securities fraud by deceiving investors, two of the sources said.

The Securities and Exchange Commission (SEC) is also investigating Tesla’s representations about driver-assistance systems to investors, one of the people said, David Shepardson also reported for Reuters.