Tesla Under Investigation: DOJ Examines Securities Fraud Allegations, NHTSA Presses for Answers on Autopilot Changes

Tesla headquarters, California, USA United States of America
Consumer skepticism around electric vehicles and self-driving capabilities growing, Tesla faces fines up to $135.8 million if it fails to comply with NHTSA deadline
DOJ investigation ongoing, Tesla providing documents to investigators
NHTSA pressing Tesla for answers about changes made to Autopilot following a voluntary software recall affecting 2 million vehicles in the US
NHTSA probe found safety issues with Tesla Autopilot contributed to 467 collisions and 14 deaths from January 2018 through August 2023
Tesla currently undergoing reorganization and layoffs, no disclosure of impact on Autopilot and vehicle-safety engineering teams
Tesla under investigation by DOJ for securities fraud allegations related to Autopilot and Full Self-Driving technology claims
Tesla under scrutiny for self-driving claims, driver intervention required despite promises of hands-free driving
Tesla Under Investigation: DOJ Examines Securities Fraud Allegations, NHTSA Presses for Answers on Autopilot Changes

Tesla, the electric vehicle company led by Elon Musk, is facing investigations from both the Department of Justice (DOJ) and the National Highway Traffic Safety Administration (NHTSA) over its self-driving technology claims. The DOJ is examining whether Tesla committed securities and wire fraud by misleading consumers and investors about its Autopilot and Full Self-Driving (FSD) technology, while the NHTSA is pressing Tesla for answers about changes made to Autopilot following a voluntary software recall in December affecting about 2 million vehicles in the U.S.

The DOJ investigation began after Reuters reported that Tesla informed investors in January 2023 that it had received requests for information related to FSD and Autopilot from the department. The probe is still ongoing, with Tesla providing voluminous documents to the investigators. The company's stock dropped almost 3% in trading following the initial report.

Tesla has been under scrutiny for its self-driving claims for years, with critics arguing that its technology is not fully autonomous and that Musk's statements about it have been misleading. In the past, Tesla has promised consumers they could travel to their work or friends' houses without touching the wheel while using FSD. However, driver intervention is still required.

The NHTSA investigation follows a three-year probe that found safety issues with Tesla Autopilot contributed to at least 467 collisions and 14 deaths from January 2018 through August 2023. The agency concluded that drivers involved in those crashes were not sufficiently engaged in the driving task, and the warnings provided by Autopilot when Autosteer was engaged did not adequately ensure that drivers maintained their attention on the driving task.

Tesla is currently undergoing a massive reorganization and sweeping layoffs. The company has not disclosed how many jobs in its Autopilot and vehicle-safety engineering teams may have been cut. For about a decade, CEO Elon Musk has been promising that Tesla is on the cusp of a self-driving breakthrough, but sales of Tesla EVs have been dropping in the first quarter, and Musk has been focusing investors' attention on his dream of a future full of Tesla artificial intelligence products.

The investigations come as consumer skepticism around electric vehicles and their self-driving capabilities grows. The NHTSA has given Tesla a July 1 deadline to answer questions related to its December recall of more than 2 million EVs over an issue with Autopilot's software, and the company faces fines up to $135.8 million if it fails to comply.

Tesla shares fell 3.8% on Tuesday, May 7, to $177.81 and are down 28% year-to-date.


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Confidence

85%

Doubts
  • Are there any specific instances of misleading statements made by Tesla about its Autopilot and Full Self-Driving technology?
  • What is the exact nature of the NHTSA's concerns regarding changes made to Autopilot following the recall?

Sources

90%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla must provide NHTSA with Autopilot recall data by July or face up to $135 million in fines

CNBC News Lora Kolodny Tuesday, 07 May 2024 21:08
  • Unique Points
    • NHTSA is pressing Tesla for answers about changes made to Autopilot following a voluntary software recall in December affecting about 2 million vehicles in the US.
    • ,
  • Accuracy
    • Tesla must meet a deadline of July 1 to provide information to NHTSA or face fines up to $135.8 million.
    • At least 20 Tesla vehicles have been involved in crashes since the recall where Autopilot was thought to be in use.
    • NHTSA is seeking detailed crash data and records about Tesla’s engineering teams and approach to safety defect determination decision making, issue investigation, action design including human factors considerations (initial and modifications), and testing.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

90%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla probe: DOJ reportedly investigating securities, wire fraud

Yahoo Finance Seana Smith Wednesday, 08 May 2024 16:42
  • Unique Points
    • Justice Department (DOJ) is investigating Tesla (TSLA) for potential securities and wire fraud in relation to its self-driving claims.
    • Company has been emphasizing its ‘Full Self-driving’ technology despite consumer skepticism.
  • Accuracy
    • Justice Department is investigating Tesla for potential securities and wire fraud in relation to its self-driving claims.
    • ,
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

90%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla is being investigated for securities and wire fraud

Quartz News Site William Gavin Wednesday, 08 May 2024 14:37
  • Unique Points
    • Elon Musk's comments about Tesla’s self-driving technology are being investigated by the Department of Justice for potential securities and wire fraud.
    • The investigation focuses on whether Tesla committed wire fraud by misleading consumers about the technology and whether Tesla committed securities fraud by deceiving investors.
    • Tesla informed investors in January 2023 that the department had asked it for information related to FSD and Autopilot. The probe is still in the early stages.
  • Accuracy
    • Tesla's driver assistance technology is not fully autonomous, despite Musk’s claims suggesting otherwise.
    • Tesla has faced more than a dozen lawsuits over its self-driving technology which has been accused of misleading consumers and inspiring drivers to be more laidback about watching the road.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (75%)
    The author makes several statements that could be considered appeals to authority and inflammatory rhetoric. For example, the author states that 'Tesla is being investigated for securities and wire fraud' without providing any evidence or context to support this claim. The author also uses phrases like 'voluminous documents' and 'basic functionality for level five autonomy this year' which could be seen as inflammatory rhetoric. Additionally, the author mentions several lawsuits and investigations against Tesla, but does not provide any details or context about these cases or their outcomes. These statements do not constitute logical fallacies on their own, but they do weaken the overall credibility of the article and could potentially mislead readers.
    • ]The person in the driver's seat is only there for legal reasons. He is not doing anything. The car is driving itself.[/
    • Tesla has been accused of false advertising by California’s Department of Motor Vehicles and investigated by the state attorney general’s office over its marketing practices.
    • The NHTSA has linked Autopilot to more than 200 crashes and 29 deaths and opened more than 50 special crash investigations into Tesla vehicles thought to be linked to Autopilot.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication