U.S. prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its cars’ capabilities.
U.S. prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities, three people familiar with the matter told Reuters.
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.
Tesla videos demonstrating the technology that remain archived on its website say: “The person in the driver’s seat is only there for legal reasons. He is not doing anything. The car is driving itself.” “Going balls to the wall for autonomy is a blindingly obvious move,” the billionaire executive posted on his social-media platform X in mid-April. Tesla shares, down more than 28% so far this year, surged in late April when Musk visited China and made progress toward approvals to sell FSD there.
U.S. courts previously have ruled that “puffery” or “corporate optimism” regarding product claims do not amount to fraud. In 2008, a federal appeals court ruled that statements of corporate optimism alone do not demonstrate that a company official intentionally misled investors.
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