US prosecutors are investigating Tesla for securities and wire fraud

Reports indicate that Tesla is being investigated by US prosecutors for any possible evidence of committing securities and wire fraud.

2

The examination of the company by US prosecutors is to find evidence of Tesla committing securities and wire fraud by misleading consumers and investors with Tesla's self driving capabilities found within its electric car line-up.

The two technologies, Tesla's Full Self-Driving system, and the Autopilot system, have been a point of conjecture for quite some time, as some regulatory bodies have argued the naming of the technologies is misleading due to the features not providing full autonomy, as Tesla still requires drivers to periodically place their hands on the wheel and be ready to take back over when necessary.

Three people familiar with the matter have told Reuters that US prosecutors and now investigating Tesla and Elon Musk's claims about the vehicles to find evidence of the company, or Musk, suggesting the vehicles are able to drive themselves.

As for wire fraud, Reuters reports that an investigation has been launched into possible deception in interstate communications, which involves misleading consumers about self-driving technologies. Furthermore, an investigation has been launched into whether Tesla has committed securities fraud by misleading investors.

One of the sources told the publication that prosecutors aren't close to reaching a conclusion, as Tesla has provided them with mountains of documents to sift through in response to subpoenas being issued. Lastly, these investigations by regulators and prosecutors are in no way an indication of guilt, as there currently is no evidence of wrongdoing.