Tesla Tumbles On Reports Of DoJ Securities Fraud Probe Over Deceptive Self-Driving Capabilities

In what appears to be just the latest ‘lawfare’ angle of attack against Elon Musk (and his freedom of speech enabling platform), President Biden’s Department of Justice is examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities.

Tesla’s Autopilot and Full Self-Driving systems assist with steering, braking and lane changes – but are not fully autonomous – and Reuters reports that, according to three people familiar with the matter, the DoJ is checking statements by the automaker and Chief Executive Elon Musk suggesting cars can drive themselves.

Investigators are exploring whether Tesla committed wire fraud, which involves deception in interstate communications, by misleading consumers about its driver-assistance systems, the sources said.

They are also examining whether Tesla committed securities fraud by deceiving investors, two of the sources said.

The Securities and Exchange Commission is also investigating Tesla’s representations about driver-assistance systems to investors, one of the people said. The SEC declined to comment.

TSLA shares are down around 3-4% in the pre-market on the headlines…

Presumably, the Biden administration knows best exactly what level of full autonomy ‘counts’; knows best what tolerance for ‘death’ is allowed on the streets; and knows best just what the buyers of Tesla’s FSD system expected.

It appears the Biden administration also knows better than Beijing since Chinese officials told Musk that China “welcomes Tesla to do some robotaxi tests in the country” and hopes it to “set a good example”, and sources indicated that the Chinese government may have offered partial support for this FSD rollout plan.

And why go after Musk? (rhetorical question of course) – …because no other executive at any firm in history has ever exaggerated claims about product features.

Meanwhile, at the leading manufacturer of charging stations in Europe…

The headquarters of @alpitronic, the leading provider of charging stations in Europe, is in flames. pic.twitter.com/KkMgi7XPuC

— Roland Pircher (@piloly) May 8, 2024