Elon Musk, the enigmatic CEO of Tesla and SpaceX, is now under federal investigation for potentially misleading claims about Tesla’s self-driving technology. The Department of Justice (DOJ) is looking into whether Musk and Tesla may have committed securities fraud or wire fraud by exaggerating the capabilities of their Autopilot and Full Self-Driving (FSD) systems.
According to a report by Reuters, the investigation began in October 2022 and Tesla disclosed the DOJ’s request for information related to FSD and Autopilot to its investors in January 2023. The inquiry is still in its early stages, with the DOJ sifting through a large amount of documentation provided by the electric vehicle giant.
Musk has long been a vocal advocate for Tesla’s self-driving technology, often touting the company’s advancements in autonomy. However, critics argue that Tesla’s technology remains at level 2 autonomy, far from the level needed for fully autonomous driving. Musk’s optimistic statements have led to lawsuits and accusations of false advertising, with the National Highway Traffic Safety Administration linking Tesla’s Autopilot to over 200 accidents and 29 fatalities.
In response to the investigation, Tesla’s stock saw a 3% decline in the market. The DOJ and SEC have not confirmed the existence of an investigation, but the scrutiny on Tesla’s self-driving claims continues to grow. Musk’s bold promises about the future of autonomous driving may now be under the microscope as regulators seek to hold Tesla accountable for its statements.