Investigation of Tesla by US Government is Ongoing

The Investigation of Tesla by the US government over their securities and wired crimes by overselling self-driving features currently on.

Last year, Tesla maintained its leadership position in U.S. electric vehicle sales, surpassing the market share of established manufacturers by approximately 55% despite the intensifying competition. Significantly contributing to this achievement are the company’s Full Self-Driving (FSD) and Autopilot systems, which make commitments to assume specific critical driving responsibilities from the operator. How the company markets its self-driving capabilities is the subject of an ongoing Justice Department investigation into potential criminal activity. A new report claims the government is now concentrating on the possibility that Tesla committed wire and securities fraud. 

The Justice Department has refrained from commenting on the new report and has not issued any public statements regarding the investigation’s progress. According to three sources with direct knowledge of the investigation cited by Reuters, investigators are reviewing company statements promoting FSD and Autopilot. Certain aspects of Tesla’s marketing, including statements made by CEO Elon Musk, have been deemed to have exceeded acceptable boundaries and may have constituted an unlawful scheme to deceive investors.

Although Reuters declined to identify allegations undergoing governmental investigation, the report elaborates on one egregious exaggeration. A Tesla engineer acknowledged in late 2022, during testimony in a lawsuit concerning a fatal Autopilot collision, that a 2016 video claiming to show a self-driving vehicle was fabricated. Even though the footage tracked the car along a predetermined path with comprehensive 3D mapping, the driver was still required to make several interventions. This video is, surprisingly, still accessible via Tesla’s website. Although that occurred several years ago, the Tesla account on X (formerly Twitter) consistently posts videos of individuals utilizing FSD while not having their hands on the wheel, a condition ostensibly necessary for a supervised self-driving system. This may perpetuate the notion that FSD possesses more excellent capabilities than it does.

Tesla confirmed the Justice Department’s subpoenaed Autopilot and FSD-related records were thoroughly examined last year. The overwhelming volume of documents presented indicates that prosecutors have a substantial amount of work to do before concluding, as reported by Reuters. The investigation’s sluggish progress may lead to criminal charges, civil sanctions, or a complete lack of action. 

This case is distinct from the National Highway Traffic Safety Administration’s (NHTSA) ongoing investigation into the safety of Tesla’s autonomous driving features. Several fatalities were involved in hundreds of collisions that transpired while Autopilot or Full Self-Driving was engaged. Tesla has been compelled to conduct numerous recalls in recent years due to the release of vehicle enhancements purporting to enhance its automobiles’ autonomous navigation capabilities. 

According to sources for Reuters, legal action against Tesla or its executives would be challenging to pursue sources. U.S. courts have generally determined that “corporate optimism” does not suffice as conclusive evidence of fraud. If the case progresses, prosecutors will presumably require access to internal Tesla communications.