Tesla is under investigation for securities and wire fraud related to autonomous driving claims

The Justice Department is investigating whether Tesla committed securities and wire fraud in connection with its self-driving vehicle claims. Reuters reports today, citing three sources familiar with the matter.

The investigation, first reported in October 2022 but ongoing since at least late 2021, involves federal prosecutors in Washington and San Francisco investigating whether Tesla executives misled consumers, investors and regulators by have made unsubstantiated claims about its autonomous capabilities. Now investigators appear to be focusing on specific allegations against the company: securities and wire fraud.

Accordingly ReutersThe investigation is particularly examining statements made by Tesla boss Elon Musk. For years, Musk has promised that fully autonomous Tesla vehicles will soon be on the rise – while admitting that he often sets overly optimistic timelines. However, the company’s advanced driver assistance features, Autopilot and Full Self-Driving, do not make the vehicles autonomous and require the driver to keep their hands on the wheel and keep their eyes on the road.

Tesla has repeatedly pushed the boundaries of security by allowing its customers to beta test products that may not yet be ready for widespread release. Tesla vehicles with Autopilot have been the subject of numerous recalls over the years and have been involved in hundreds of accidents, dozens of which have been fatal. The latest recall, which affected every single Tesla sold to date, has now been subjected to a new investigation because it failed to prevent driver abuse and address the deficiencies identified in the first recall.

Wire fraud involves deceiving customers in interstate communications, while securities fraud involves misleading investors. The Securities and Exchange Commission is also investigating whether Tesla lied in its communications about self-driving vehicles. Reuters says.

The Justice Department is also expected to investigate Tesla’s vehicle range claims. Tesla customers have long complained that the company’s listed vehicle lineups often don’t reflect the cars’ actual performance.

In its most recent securities filing, Tesla admitted it has “regularly” received subpoenas and requests for information from the SEC and the Justice Department, some of which concern Autopilot and full self-driving.

“To our knowledge, no government agency has concluded that any wrongdoing occurred in an ongoing investigation,” the company said.