Tesla is currently under scrutiny from federal authorities in the United States, facing two separate investigations over potential misuse of company resources and misrepresentation of battery range:
Personal Use of Company Resources: Federal prosecutors from the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission (SEC) are reportedly investigating whether Tesla misused company resources for a secretive project, believed to be a spacious glass house in Austin, Texas, potentially for CEO Elon Musk’s personal use. The investigations aim to determine how much Tesla spent on this project.
Battery Range Misrepresentation: Manhattan federal prosecutors are separately examining whether Tesla deliberately misrepresented the battery range of its electric vehicles. Previous reports in July suggested that Tesla’s electric cars often fell short of the advertised range, and the touchscreen displays inaccurately represented the remaining range to drivers.
These federal probes are the latest in a series of investigations that Tesla has faced from both state and federal regulators. The company has previously received requests for information from various agencies, including the National Highway Traffic Safety Administration (NHTSA), the National Transportation Safety Board (NTSB), and the Department of Justice (DOJ).
Tesla and the Manhattan federal prosecutor’s office have not provided immediate comments on the investigations, while the SEC refrained from confirming or denying the existence of a potential investigation.
Notably, Tesla has a history of regulatory issues, including SEC charges against Elon Musk in 2018 over misleading tweets about taking the company private. This resulted in a settlement requiring Musk to step down as chairman and have his tweets reviewed by a securities lawyer. Subsequent to this revised settlement, the SEC issued subpoenas related to Tesla’s governance processes and compliance.
Moreover, Tesla’s driver assistance systems, such as Autopilot, Enhanced Autopilot, Full Self-Driving (FSD), and FSD Beta, have come under scrutiny by the National Highway Transportation and Safety Administration (NHTSA) following incidents where Tesla vehicles with Autopilot systems collided with stationary emergency vehicles.
These investigations underscore the increased regulatory scrutiny faced by Tesla as it continues to be a major player in the electric vehicle and autonomous driving industries. The outcomes of these probes will be closely watched by investors, regulators, and the public.