US Tesla Autopilot probe focusing on securities, wire fraud after Elon Musk hyped self-driving tech

Core Viewpoint - The U.S. Justice Department is investigating Tesla for potential securities and wire fraud related to misleading claims about its self-driving capabilities, with a focus on statements made by CEO Elon Musk and the company's marketing materials [1][2][10]. Group 1: Investigation Details - Investigators are examining whether Tesla misled consumers about its driver-assistance systems, which could constitute wire fraud [2] - The Securities and Exchange Commission (SEC) is also looking into Tesla's representations regarding its driver-assistance systems to investors [2] - The investigation could lead to criminal charges, civil sanctions, or no action, as it is not evidence of wrongdoing [2] Group 2: Statements and Claims - Tesla's Autopilot and Full Self-Driving systems are designed to assist with driving but are not fully autonomous, despite claims suggesting otherwise [1][10] - Musk has made numerous statements over the years promoting the capabilities of Tesla's self-driving technology, including a 2016 claim that Autopilot is "probably better" than a human driver [7][10] - Archived Tesla videos have claimed that the driver is only present for legal reasons, implying the car can drive itself [4] Group 3: Legal and Regulatory Context - Legal experts indicate that prosecutors must prove Tesla's claims were knowingly false and materially misleading to consumers or investors [10][12] - Previous court rulings have established that corporate optimism or "puffery" does not equate to fraud [10] - The investigation is complicated by the need for evidence showing that Tesla executives were aware of any misleading statements [12] Group 4: Safety Concerns and Incidents - Tesla's marketing has raised concerns about creating a false sense of security among consumers regarding the capabilities of Autopilot and Full Self-Driving [13][15] - There have been multiple fatal crashes involving Teslas with Autopilot engaged, leading to increased scrutiny from regulators [15] - The National Highway Traffic Safety Administration (NHTSA) has investigated whether a recall of over 2 million vehicles adequately addressed safety issues related to Autopilot [15]