SEC Probe Elon Musk for his role in Tesla self-driving claims

U.S regulators are looking into Elon Musk’s involvement in Tesla’s claims of self-driving cars. This is the latest attempt by watchdogs at scrutinizing the actions and decisions of the second-richest person in the world.

According to a source with knowledge of the matter, the review is part an ongoing Securities and Exchange Commission investigation of statements made by the company about its Autopilot driver assistance system. The person who requested anonymity to discuss aspects of the investigation that have not been disclosed.

Musk, Tesla’s chief executive officer, gives the agency special weight because of the credibility of his comments. The SEC declined comment. Musk and Alex Spiro, his attorney, didn’t respond when asked for comment.

Musk has already been clashing with the SEC over several issues. The regulator’s Autopilot review touches directly on a business priority Musk identified as critical to Tesla’s future.

According to the person, SEC officials are looking into whether Musk made inappropriate forward-looking statements. Although an investigation by the enforcement unit of the agency doesn’t always result in consequences, it could lead to lawsuits, fines, or other civil penalties for executives and companies.

The SEC could not determine which Musk statements or actions regarding Autopilot were relevant.

Musk has been focusing for many years on Tesla’s driver assistance technology. Musk was the one who directed the creation of a 2016 YouTube video that might have exaggerated Tesla’s technology’s capabilities. However, the video’s promises of autonomous and hands-free driving have yet to come true.

Musk gave an inside look into his thinking regarding the Autopilot video in 2016. He told Tesla employees in internal emails that he would tell the world this was what the car “will” be capable of doing, and not that it could do this immediately upon receipt.

Musk stated that Tesla is ahead of its rivals in self-driving cars because the car can be upgraded to autonomy during a Twitter Spaces conversation. Musk added, “That’s something no other car company could do.”

Separately, Tesla is being questioned by safety watchdogs about its automated-driving system and is set for its first jury trial. This will be over an Autopilot driver fatality. The U.S. Justice Department is also investigating whether Tesla’s public statements about the feature were misleading.

Two investigations are ongoing by the U.S. National Highway Traffic Safety Administration into Autopilot’s defect. In June, the agency upgraded the first probe. It was focused on Tesla Autopilot’s handling of crash scenes with first responder cars. The agency initiated another probe, relating to sudden braking, four months prior.

Musk has been fighting against the SEC for years due to his famous tweet that he had secured funding for Tesla’s privatization.

This week, he defended the 2018 missive in San Francisco court. Investors have accused him of securities fraud. Musk stated that he believed that he was supported financially by wealthy investors and the Saudi government at the time.

Tesla stock rose 11% Friday. This is a sign that Tesla believes the worst is over. Last year’s stock drop of 65% was partly due to concerns that Musk would be distracted from his purchase Twitter.

According to Bloomberg Billionaires Index, Musk’s net worth is $155.7 billion.

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By: unknown
Title: Elon Musk faces SEC probe for role in Tesla self-driving claims
Sourced From: www.bloomberg.com/news/articles/2023-01-27/elon-musk-faces-sec-probe-for-role-in-tesla-self-driving-claims