The U.S. Department of Justice (DOJ) has significantly expanded its investigation into Tesla, according to the electric vehicle maker’s latest quarterly report filed with the Securities and Exchange Commission last week.
Tesla revealed that it has received subpoenas from the DOJ relating to its advanced driver assistance system Autopilot, the accompanying Full Self-Driving (FSD) feature, executive personal benefits, related parties, vehicle range, and personnel decisions.
The DOJ first launched an inquiry into Autopilot and FSD earlier this year after escalating crashes involving Tesla vehicles using the automated driving features. Now the investigation has broadened to include several other areas of Tesla’s business.
It is unclear exactly what potential wrongdoing the DOJ is looking into regarding Autopilot and FSD. However, the system has come under growing scrutiny after being involved in multiple crashes, some of them fatal. Critics have argued that Tesla misleads consumers into believing the current technology is more capable of driving without human intervention than it actually is.
The other matters under DOJ investigation also raise questions. Scrutiny of executive personal benefits could mean the DOJ is looking into whether Tesla leaders inappropriately used company resources for personal gain. Probing related parties may indicate concerns over undisclosed conflicts of interest. Reviewing vehicle range and personnel decisions suggests a wider look into the company’s operations and transparency.
Tesla said it is cooperating with the DOJ investigation. However, an expanded probe from the agency represents a serious escalation of legal jeopardy facing the electric carmaker and its Chief Executive Elon Musk.
While the outcome remains uncertain, the DOJ investigation has the potential to result in significant penalties, repercussions, and reputational damage if authorities determine Tesla or its executives broke laws. The probe comes amid several other investigations into Tesla from federal agencies and adds pressure on a company already facing mounting scrutiny over its business practices and safety record.
