Justice Department prosecutors are investigating whether Elon Musk’s Tesla committed securities and wire fraud by misleading investors and consumers about the self-driving capabilities of its electric cars, sources said. .
Reuters report U.S. prosecutors are reviewing claims about Tesla’s self-driving technology to determine whether the company misled investors and consumers. The Justice Department is investigating whether Tesla committed wire fraud by defrauding interstate wires and securities fraud by misleading investors, according to three people familiar with the investigation. The SEC is also looking into Tesla’s representations to investors about driver-assistance systems, one of the people said.
FILE – Tesla CEO Elon Musk attends the opening ceremony of the Tesla Factory Berlin-Brandenburg in Gruenheide, Germany on March 22, 2022. (Patrick Pleul/Pool via AP, File)
Florida Tesla Accident (Florida Highway Patrol)
Tesla’s Autopilot and fully autonomous driving systems assist with steering, braking, and lane changes, but are not fully self-driving. The company has warned drivers to be prepared to take over the wheel, but the Justice Department says other comments made by Tesla and CEO Elon Musk hinted that its cars could drive themselves. is being investigated.
The investigation has been underway for some time, with prosecutors seeking information from Tesla about Autopilot and full self-driving. Tesla has submitted extensive documents, but no decision has yet been made on what to do next as the Justice Department reportedly continues to review the data. The investigation will need to prove that Tesla’s claims crossed the line from legitimate salesmanship to material and intentionally false statements that unlawfully harmed consumers and investors. .
Safety risks associated with overselling self-driving systems and fatal crashes involving Tesla cars with Autopilot activated have raised concerns among safety regulators and courts. In April, the Washington State Patrol arrested a man on suspicion of vehicular homicide after a Tesla with Autopilot activated struck and killed a motorcyclist while the driver looked at his cell phone. Troopers said in a probable cause statement that the driver “admitted to being negligent while driving in Autopilot mode…trusting the machine to drive for him.” listed.
Breitbart News previously reported on NHTSA’s recent investigation into Autopilot, which found “significant safety gaps” in Tesla’s technology.
NHTSA’s Office of Defect Investigations released a document Friday detailing the completion of extensive work that uncovered evidence that Tesla’s vulnerable driver engagement system was inadequate to Autopilot’s permissive operating capabilities, TechCrunch reports. did. This mismatch created a significant safety gap between drivers’ expectations of Autopilot’s operational capabilities and the system’s actual capabilities, leading to foreseeable misuse and avoidable crashes.
According to NHTSA, “This discrepancy created a significant safety gap between drivers’ expectations.” [Autopilot’s] Operational capabilities and true capabilities of the system. This gap led to foreseeable misuse and avoidable crashes. ”
The study, which began in 2021, looked at 953 crashes reported up to August 30, 2023. Approximately half of these crashes either had insufficient data, were found to be another vehicle at fault, Autopilot was not being used, or were otherwise deemed unrelated to the investigation. It was done. The remaining 467 crashes were classified into three groups. 211 incidents involved a Tesla colliding with another vehicle or object after an attentive driver had enough time to react; 145 incidents involved a vehicle leaving the roadway in low-traction conditions; and 111 incidents involved driver input. This was an accident that caused the vehicle to veer off the road. Autopilot is accidentally deactivated.
Tesla has come under fire for technology messaging that includes brand names such as “Autopilot” and “full self-driving,” which some say gives customers a false sense of security. . In response, Tesla shareholders sued the company, claiming they were misled about the technology’s capabilities.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
