US prosecutors are assessing whether Tesla (NASDAQ:TSLA) committed securities or wire fraud by misleading investors about electric vehicles’ self-driving capabilities, according to a report from Reuters on Wednesday.
The publication, citing three people familiar with the matter, said that even though Tesla warned drivers to stay ready to take over driving, the US Justice Department is scrutinizing other statements made by the company and CEO Elon Musk suggesting its cars can drive themselves.
Tesla’s Autopilot and Full Self-Driving features are able to assist drivers with steering, braking and lane changes, but they are not fully autonomous.
Furthermore, US regulators are said to have also investigated hundreds of crashes that have occurred in Teslas with Autopilot engaged, while Reuters add that the Securities and Exchange Commission is also investigating Tesla’s representations about driver-assistance systems to investors.
The publication added that the probe could result in criminal charges, civil sanctions, or no action. However, they cautioned that prosecutors have not yet decided how to proceed.