Tesla discloses multiple Department of Justice probes

Tesla DOJ probe disclosure overview: 

• Who: Tesla has disclosed that it has received multiple subpoenas from the Department of Justice. 
• Why: The subpoenas are related to the driving range of Tesla’s electric vehicles, its driver assistance systems, personnel decisions at the company and personal benefits for “related parties.”
• Where: Tesla is an American multinational automotive and clean energy company with headquarters in Austin, Texas.

Tesla disclosed in its third quarter filing earlier this week that it is the subject of multiple U.S. Department of Justice (DOJ) probes, and says it has received multiple subpoenas from DOJ asking for information about the range of its electric vehicles, among other things. 

The DOJ subpoenas come in the wake of research and reports revealing that Tesla’s electric vehicles often allegedly fail to achieve the mileage that is stated by the company both in range estimates and on in-vehicle displays, CNBC reports. 

Tesla revealed the DOJ, which has also been investigating the automaker — further requested information about its driver assistance systems — which are marketed as Full Self-Driving and Autopilot options — along with personnel decisions made at the company. 

The department also requested information about  “personal benefits, related parties,” according to Tesla, with the term related parties possibly referring to company executives, directors, large shareholders and other businesses they own, CNBC reports. 

Tesla reveals prospective, individual class actions have been filed in response to data breach

Tesla reportedly also made several other disclosures in its filing, including that prospective and individual class action lawsuits have been filed against it in response to a data breach that was reported on in May and involved leaked company files. 

The files exposed during the data breach included thousands of customer complaints about the automaker’s driver assistance features, according to CNBC. 

Tesla’s disclosure also follows an August report by The Wall Street Journal that the automaker was being investigated by the DOJ and U.S. Securities and Exchange Commission for possibly using company funds to design and construct a “glass house project” for its founder and CEO Elon Musk. 

Reuters, meanwhile, reported last year that Tesla was under criminal federal investigation over its claims that its vehicles are capable of self-driving, reports CNBC. 

The automaker recently recalled 54,676 of its model year 2021-2023 Model X vehicles over concerns their brake fluid level sensor may be miscalibrated. 

What are your thoughts on Tesla’s disclosure of the DOJ probes? Let us know in the comments.

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