Federal prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities, Reuters reports. Tesla’s Autopilot and Full Self-Driving systems help 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. Regulators have investigated hundreds of crashes, including fatal ones, that have occurred in Teslas with Autopilot engaged, resulting in a mass recall by the automaker.
Investigators are exploring whether Tesla committed wire fraud, which involves deception in interstate communications, by misleading consumers about its driver-assistance systems. They are also examining whether Tesla committed securities fraud by deceiving investors. The Securities and Exchange Commission is also investigating Tesla’s representations about driver-assistance systems to investors. Last October, Tesla disclosed that the Justice Department had asked the company for information about Autopilot and Full Self-Driving. The probe could result in criminal charges, civil sanctions, or no action. Prosecutors are far from deciding how to proceed as they sift through voluminous documents Tesla provided in response to subpoenas.