Tesla has once again found itself in the hot seat, as the electric car company is now being investigated by U.S. prosecutors who are looking to determine whether it committed securities or wire fraud by misleading investors and consumers about its self-driving feature.
According to a report from Reuters, which cited three sources familiar with the matter, Tesla is being examined for its Autopilot and Full Self-Driving features, which offer assistance with driving but are not autonomous.
Tesla has told drivers that they need to stay ready to take over the wheel, but has also advertised 'the person in the driver’s seat is only there for legal reasons.' Reuters says the Justice Department is examining statements that Tesla and its Chief Executive Elon Musk made.
The investigation will look to determine whether Tesla committed wire fraud by misleading consumers about its self-driving features, the report shared. They are also looking into whether Tesla committed securities fraud by deceiving investors.
The probe into Tesla’s actions could result in criminal charges, civil sanctions, and more if they're found liable.
Prosecutors are still going through the documents that Tesla provided in response to its subpoenas.
It hasn’t been determined what specific statements were made that led prosecutors to start their investigation, though videos archived on Tesla’s website could potentially show what investigators are looking at.
“The person in the driver’s seat is only there for legal reasons. He is not doing anything. The car is driving itself,” it says in one video.
The investigation comes after the National Highway Safety Traffic Administration conducted a year-long investigation into a series of crashes related to the Tesla’s Autopilot feature.
Regulators discovered that Autopilot was on during hundreds of crashes, which resulted in 14 deaths and 54 injuries.
The NHTSA said it found “a critical safety gap between drivers’ expectations” and the “true capabilities” of Tesla’s technology.
“This gap led to foreseeable misuse and avoidable crashes,” regulators shared.
The investigation resulted in Tesla recalling nearly every single one of its vehicles in the country to fix a flaw in its Autopilot system, although it disputed the findings from the NHTSA. The recall involved more than 2 million vehicles.