Tesla Autopilot Probe Could Include Securities And Wire Fraud Charges

Tesla could face additional securities and wire fraud charges stemming from on-going investigations into its self-driving tech (Autopilot, or FSD) by American regulators.

As you may already know, American EV-making giants Tesla are under investigation by American regulators for potential fraud by misleading buyers and investors by overstating the true self-driving capabilities of its electric vehicles (EVs).

Currently, their headache has doubled as they are reportedly set to face additional security and wire fraud charges stemming from the same probe. The legal focus of the investigation is unclear, and if the findings are correct, Tesla could face criminal charges, civil sanctions, or no action at all. 

The uncertainty stems from the difficulty in assessing whether Tesla knowingly made false statements about its cars' tech, causing harm to consumers and investors, or genuinely believed it could deliver advanced autonomous ability. 

Tesla's Autopilot or FSD tech has caused strong controversy since the EV-maker first began marketing the tech in its cars.

Prosecutors will likely examine internal Tesla communications, along with CEO Elon Musk's tweets and media appearances, as well as statements given by Tesla employees in previous court cases. 

Evidence to support fraud charges includes Musk's descriptions of Autopilot and Full Self-Driving (FSD) tech on earnings calls, and an official 2016 Tesla video showing one of the company's EVs driving autonomously.

Tesla's Autopilot tech has been a subject of controversy, with some arguing that the person in the driver's seat is only there for legal reasons. In a lawsuit over a fatal crash involving Autopilot, an engineer testified that one of the videos posted in October 2016 did not accurately portray the technology's capabilities at the time.

It remains uncertain if Tesla will face additional punishments stemming from the additional charges mentioned.

However, Tesla CEO Elon Musk has been increasingly focused on self-driving technology as Tesla's car sales and profit slump.  The company recently slashed costs through mass layoffs and shelved plans for a US$25,000 entry-level model that had been expected to drive sales growth. 

Musk has repeatedly promised self-driving Tesla cars for about a decade, and Tesla lawyers said that failure to realize a long-term, aspirational goal is not a fraud. 

Tesla shares also surged recently in late April when Musk visited China and made progress toward gaining approvals to sell FSD there. KR

Source: Reuters