Elon Musk Under Federal Probe for Misleading Claims on Tesla’s Full Self-Driving Technology

The Department of Justice (DOJ) is currently investigating Elon Musk and Tesla over their claims about the company’s self-driving technology. The probe is looking into whether Musk and Tesla may have committed securities fraud or wire fraud by misleading consumers and investors about the capabilities of their Autopilot and Full Self-Driving (FSD) features.

Tesla’s website clearly states that drivers must still take responsibility for steering manually, despite Musk’s repeated claims that Tesla’s electric cars can drive themselves. The investigation, which began in October 2022, is still in its preliminary stages, with Tesla disclosing to investors in January 2023 that the DOJ had requested information related to FSD and Autopilot.

Musk has been a vocal supporter of Tesla’s self-driving technology, but his overly optimistic viewpoints have often fallen short. Despite Musk’s claims that Tesla would achieve level five autonomy by 2020, the technology remains at level 2 as of 2024.

Tesla has faced legal challenges in the past, including accusations of false advertising and investigations by regulatory bodies like the National Highway Traffic Safety Administration (NHTSA). The NHTSA has associated Tesla’s Autopilot with over 200 accidents and 29 fatalities, leading to more than 50 special crash investigations.

The U.S. Department of Justice and the SEC have not confirmed the existence of an investigation, but Tesla’s stock saw a 3% decline following news of the probe. The company has until July 1 to respond to inquiries from the NHTSA regarding a December recall of over 2 million electric vehicles due to a software issue with Autopilot.

Overall, the investigation into Tesla’s self-driving claims highlights the challenges and controversies surrounding the development and marketing of autonomous driving technology in the automotive industry.