In Tesla Autopilot probe, US prosecutors focus on securities, wire fraud
Live MintBy Mike Spector and Chris Prentice May 8 - U.S. 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 Reuters. During an October 2022 call, Musk addressed a forthcoming FSD upgrade he said would allow customers to travel “to your work, your friend’s house, to the grocery store without you touching the wheel.” Musk is increasingly focused on self-driving technology as Tesla's car sales and profit slump. Justice Department officials will likely seek internal Tesla communications as evidence that Musk or others knew they were making false statements, said Daniel Richman, a Columbia Law School professor and former federal prosecutor. That is a challenge, Richman said, but the safety risk involved in overselling self-driving systems also “speaks to the seriousness with which prosecutors, a judge and jury would take the statements.” FATAL CRASHES Tesla’s claims about Autopilot and FSD have also drawn scrutiny in regulatory investigations and lawsuits.
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