U.S. Justice Department Expands Tesla Investigation Musk to Receive Subpoenas?
Tesla said on Monday that the U.S. Department of Justice asked Tesla to provide documents related to Autopilot and FSD features.。In addition, the company received subpoenas from the Department of Justice related to personal earnings, related parties, vehicle range and personnel decisions.。
US Justice Department expands Tesla probe。
According to Tesla's filing with the U.S. Securities and Exchange Commission (SEC) on Monday (October 23), the company said it had received a request for information from the U.S. Department of Justice (DOJ), including a subpoena issued by the Department of Justice。The document mentions that the US Department of Justice asked Tesla to provide documents related to Autopilot and FSD functions。In addition, the company received subpoenas from the Department of Justice related to personal earnings, related parties, vehicle range and personnel decisions.。
Legal experts say the new documents and subpoenas requested by the Justice Department show that prosecutors have expanded their investigation and that they believe it is necessary to force Tesla to disclose information.。At the same time, the filing suggests that prosecutors may be investigating Tesla CEO Musk and whether the company truthfully described the features of its vehicles.。
In January, Tesla revealed that the Justice Department had asked the company to provide documents related to its autopilot and "fully autonomous driving" features.。
Erik Gordon, a professor of business and law at the University of Michigan, said the Justice Department's investigation is now much broader than just focusing on autopilot and FSD functions.。Gordon added: "The Department of Justice typically makes a formal written request before it escalates to an administrative subpoena if it is deemed not to have received full cooperation.。"
Jacob Frenkel, a former SEC enforcement lawyer and former federal prosecutor, argued that specifically pointing to "personal interests and related parties" suggests a possible connection to Musk.。Frenkel said the review of disclosing vehicle ranges "also reflects concerns about the company's presentation of vehicle features."。
Frenkel said it was impossible to know from the documents how far the Justice Department's investigation had progressed or whether it would lead to any criminal charges.。
Notably, Tesla said for the first time in the filing that the investigation could adversely affect the company's brand.。If the government decides to take enforcement action, it could have a material adverse effect on the company's business, results of operations, outlook, cash flow, financial condition or brand, the filing said.。
"Increasing claims that it could have a material adverse effect on the company's brand does indicate greater concern about the potential consequences that federal civil or criminal proceedings could have."。"These disclosures can reasonably be interpreted as suggesting an expanded, ongoing, and perhaps even more disruptive investigation."。"
Tesla began releasing FSD Beta updates in September 2020, with the latest version being FSD Beta 11 released on July 30 this year..4.7。Musk has said that FSD 12 will be a non-test version of Tesla's FSD.。Currently, Tesla FSD Beta already has basic autopilot, enhanced autopilot, traffic light and stop sign recognition, and city street autopilot.。Some time ago, Tesla cut the price of the FSD Beta in the U.S. by 20% from $15,000 to $12,000.。
Since 2021, Tesla has been recruiting volunteer car owners for "fully autonomous driving" tests.。During Tesla's third-quarter earnings call last week, Musk did not directly answer questions about Tesla's self-driving timeline.。"I think I'm very excited about the progress we're making on autonomous driving," he said, adding that the system could walk the area around Austin without intervention.。
But Tesla's Autopilot system has been under investigation by the U.S. Highway Safety Administration (NHTSA) since June 2016.。At the time, a driver using Autopilot died when a Tesla crashed into a tow truck crossing the road in Florida.。In addition, Tesla will face another investigation about Autopilot from August 2021。According to the investigation, at least 14 Tesla vehicles crashed into emergency vehicles while using the Autopilot system.。
Including the accident in Florida, NHTSA has sent investigators to investigate 35 Tesla accidents suspected of using Autopilot that killed at least 17 people.。The agency is also investigating complaints that Tesla suddenly braked for no reason.。
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