US prosecutors are investigating Tesla for securities and wire fraud

US prosecutors are currently investigating Tesla for securities and wire fraud by misleading investors and consumers with self-driving technologies.

Published
Updated
1 minute & 9 seconds read time

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

US prosecutors are investigating Tesla for securities and wire fraud 651165

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.

Buy at Amazon

$10 -PlayStation Store Gift Card [Digital Code]

TodayYesterday7 days ago30 days ago
$10.00$10.00$10.00
Buy at Newegg
$10.00$10.00$10.00
* Prices last scanned on 5/22/2024 at 4:13 am CDT - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission.
NEWS SOURCE:reuters.com

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

Newsletter Subscription

Related Tags