SpaceX and Tesla CEO and Twitter owner Elon Musk attends the Viva Technology conference dedicated to innovation and start-ups at the Porte de Versailles exhibition center in Paris, France, on June 16, 2023.
Gonzalo Fuentes | Reuters
Tesla is reportedly facing two new federal investigations over the possible misuse of company resources by Chief Executive Elon Musk or for personal gain.
The Wall Street Journal first reported Wednesday Federal prosecutors from the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission are seeking information about how much Tesla spent planning and building a secretive project, reportedly a sprawling glass house in the greater Austin area , Texas, believed to be for Musk’s personal use.
The report also said that federal prosecutors in Manhattan are separately investigating whether Tesla deliberately misrepresented the battery range of its electric vehicles.Reuters reported in July that Tesla’s electric vehicles often not meet the requirements The company’s advertised range and the remaining range shown to drivers on the car’s touchscreen were inaccurate.
tesla The Manhattan U.S. Attorney’s Office did not immediately respond to a request for comment. The SEC’s Office of Public Affairs told CNBC via email that the agency “does not comment on the existence of a possible investigation.”
Such investigations do not always uncover wrongdoing. The new probe, however, adds to a string of other probes Tesla faces from state and federal regulators.
In its last quarterly earnings report, Tesla Disclosure: “We receive requests for information from regulatory agencies and government authorities such as the National Highway Traffic Safety Administration, National Transportation Safety Board, U.S. Securities and Exchange Commission, Department of Justice (“DOJ”), and various state, federal, and international agencies. We We generally cooperate with such regulatory and government requests, including subpoenas, formal and informal requests, and other investigations and inquiries.”
In September 2018, the U.S. Securities and Exchange Commission (SEC) filed civil securities fraud charges against Elon Musk and Tesla after the CEO tweeted that he was considering paying $420 per share. The dollar price took Tesla private, and it has secured funding. The company and Musk reached and subsequently amended a settlement with the agency that required the CEO to relinquish his three-year tenure as Tesla’s chairman and require special approval before a tweet contains material business information. Tesla’s internal securities attorney review. .
Following the revised settlement agreement, the SEC issued a subpoena to Tesla concerning its governance process and compliance with the settlement agreement.
Tesla also disclosed in its financial report for the second quarter of 2023 that the U.S. Department of Justice is seeking documents “related to Tesla’s Autopilot and FSD functions.”
The U.S. National Highway Transportation and Safety Administration recently revealed that an investigation into possible safety flaws in Tesla’s driver-assist system, which is available as a standard option Autopilot and an advanced option Enhanced Autopilot, fully automatic Drive and FSD Beta for sale in the US. The NHTSA investigation was launched after a series of accidents in which Tesla vehicles with Autopilot installed reportedly crashed into the vehicles of stationary first responders.
Read the Wall Street Journal story here.
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