Topline
A criminal probe into Tesla’s claims its partially automated vehicles are self-driving is centering on potential charges of securities and wire fraud related to concerns that the company and its CEO Elon Musk have oversold their cars’ self-driving capabilities, according to a new report from Reuters.
Key Facts
The electric car maker has been under investigation since 2021, Reuters reported at the time, prompted by a string of crashes that occurred while Tesla’s partially automated driving system was activated—the car maker acknowledged the investigation in filings last year, disclosing it had received DOJ subpoenas on various topics.
The investigation has reportedly centered on Tesla’s claims and marketing of the car’s automation capabilities—the automation systems, for instance, are called “Autopilot” and “Full Self-Driving,” which has prompted scrutiny from regulators and other groups claiming it falsely suggests the cars are autonomous and don’t require human supervision to operate.
Over the years, Musk and Tesla have both hailed the cars’ “self-driving” capabilities—a video on the Tesla website, for instance, claims “the person in the driver’s seat is only there for legal reasons” and “the car is driving itself”—though Reuters reported its not immediately clear what specific statements might be under criminal scrutiny.
While the vehicles can perform many tasks automatically, they still require human supervision and for drivers to remain alert and keep their hands on the wheel.
In probing wire fraud and securities fraud, investigators will have to show that Tesla disseminated deceptive communications to consumers and that the company deceived investors, Reuters reported.
Forbes has contacted the Department of Justice and Tesla for comment.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Contra
While Musk and Tesla have been bullish on Tesla’s capabilities, they’ve also made other statements acknowledging the importance of human intervention in their “self-driving” vehicles. The Tesla website notes, for instance, its Autopilot features “require active driver supervision and do not make the vehicle autonomous.” A post on X from Tesla on Tuesday referred to the Full Self Driving system as “FSD Supervised” and Musk also boosted the program, writing “the latest version of Tesla’s (supervised) self-driving will blow your mind.” Reuters reported that DOJ sources believe any potential charges could face significant legal hurdles in court due to those claims.
Key Background
Tesla’s partial automation technology has faced scrutiny on multiple fronts. At least eight lawsuits have been filed over fatal or serious accidents claiming the technology is not safe and that the company has exaggerated its capabilities, according to the Washington Post. In December, the company had to recall over 2 million cars due to concerns over its Autopilot technology. The National Highway Traffic Safety Administration said this week it was seeking more information on the recall, concerned the car maker didn’t do enough to ensure drivers were remaining alert after 20 crashes were reported following December’s software update. The Insurance Institute for Highway Safety in March gave its first-ever safety ratings to various partially automated driving systems—granting almost all of them, including Tesla’s, poor safety ratings.
Big Number
13. That’s how many fatal crashes involving Tesla’s Autopilot feature have been identified by the National Highway Traffic Safety Administration in a probe that started in 2021.
