- Federal prosecutors and securities regulators investigated whether Tesla Inc (NASDAQ:TSLA) misled consumers and investors about the performance of its advanced driver-assistance system, the Wall Street Journal reported.
- The Justice Department scrutinized Tesla’s statements about the safety and functionality of the system known as Autopilot. The SEC conducted a similar civil investigation.
- Tesla’s Autopilot system helps drivers with tasks such as steering and maintaining a safe distance from other vehicles on the highway, but it does not make cars autonomous.
- The U.S. auto-safety regulator and the California Department of Motor Vehicles also scrutinized Autopilot.
- Tesla told drivers to pay attention to the road and keep their hands on the wheel, but it’s public messaging has often appeared inconsistent with that guidance.
- The DOJ’s criminal investigation involves authorities in Washington and San Francisco.
- The SEC can enforce civil investor-protection laws.
- The National Highway Traffic Safety Administration, the federal auto-safety regulator, launched an investigation of Autopilot last year after a series of crashes involving Teslas and first-responder vehicles stopped at emergency scenes. The agency recently escalated that probe.
- This summer, the California DMV accused Tesla of falsely advertising its vehicles as autonomous.
- Tesla has said driving with Autopilot engaged is safer than doing so without it.
- Tesla CEO Elon Musk has frequently stated that Tesla’s automated driving software is safe but also safer than anything of which a human driver is capable.
- Tesla will soon launch an updated version of its “Full Self-Driving” software that will enable users to travel without touching the steering wheel.
- Price Action: TSLA shares traded lower by 0.54% at $223.87 in the premarket on the last check Friday.
- Photo by Blomst via Pixabay
Stifel Downgrades Applied Genetic Techs to Hold, Lowers Price Target to $0.34
Stifel analyst Dae Gon Ha downgrades Applied Genetic Techs (NASDAQ:AGTC) from Buy to Hold and lowers the price target from $3 to $0.34.
