DOJ Expands Tesla Investigation to Include Range Claims and Personal Benefits
The US Department of Justice (DOJ) is investigating Tesla following reports that the company exaggerated the driving range of its vehicles. The DOJ has requested information and subpoenaed Tesla for documents related to its Autopilot and Full Self Driving (FSD) features, as well as matters associated with personal benefits, related parties, vehicle range, and personnel decisions. This investigation comes amidst mounting backlash and legal action from customers who allege fraud and false advertising. Tesla's recent missteps, including the recall of 362,758 cars due to dangerous FSD Beta and a criminal investigation into Autopilot claims, have raised concerns. Additionally, Tesla's capital expenditures are expected to exceed targets this year, and the company is facing challenges in maintaining its dominance in the EV industry, with the success of the Cybertruck being crucial. As Tesla expands its advertising efforts, regulatory scrutiny is likely to increase.