US Department of Justice Expands Investigation into Tesla Over Vehicle Range Claims
ICARO Media Group
In a recent development, the US Department of Justice (DOJ) has escalated its probe into Tesla, focusing on the automaker's vehicle range claims. Tesla confirmed the expansion of the investigation in its latest quarterly report to the SEC.
According to the report, the DOJ's inquiry, which initially centered around Tesla's Full Self-Driving and Autopilot features, has now broadened to include subpoenas related to vehicle range and other matters. Tesla stated, "The Company has received requests for information, including subpoenas from the DOJ, regarding certain matters associated with personal benefits, related parties, vehicle range, and personnel decisions."
This marks the first time that Tesla has acknowledged receiving subpoenas from the DOJ regarding vehicle range allegations. The issue revolves around claims that Tesla provides unrealistic estimates of electric vehicle (EV) range for its vehicles.
Earlier this year, Reuters published a report claiming that Tesla had established a secretive team to suppress thousands of customer complaints about driving range. Allegedly, the company formed a "Diversion Team" in Las Vegas to cancel appointments associated with range-related issues.
Subsequently, three Tesla owners from California filed a proposed class-action lawsuit against the company, accusing it of false advertising regarding the estimated driving ranges of its EVs.
In addition to the vehicle range claims, the investigation may also involve personal benefits, potentially linked to Elon Musk's reported glass house project. The Wall Street Journal reported that Manhattan prosecutors are looking into Tesla's use of company funds for a housing project intended for Musk.
Despite the ongoing investigation, Tesla has mentioned that no government agency has concluded any wrongdoing thus far. The company stated, "To our knowledge, no government agency in any ongoing investigation has concluded that any wrongdoing occurred. We cannot predict the outcome or impact of any ongoing matters."
In the same SEC filing, Tesla highlighted its cooperation with regulatory and governmental requests, including subpoenas, from entities such as the NHTSA, NTSB, SEC, DOJ, and various local, state, federal, and international agencies.
As the DOJ's probe into Tesla's vehicle range claims expands, the future outcome of the investigation remains uncertain. While Tesla is committed to cooperating fully with the authorities, the impact on the company and its reputation is yet to be determined.