Investigators have also requested information concerning any ‘personal benefits’ provided to executives or significant shareholders.
The Department of Justice has broadened its investigation into Tesla, as confirmed by the company. In a statement to the SEC, Tesla disclosed that the agency has issued subpoenas seeking information related to “personal benefits, related parties, vehicle range, and personnel decisions.” Back in January, Tesla acknowledged that the DOJ had requested details regarding its Autopilot and Full Self-Driving features for electric vehicles.
Recent reports from Reuters and Consumer Reports have indicated that Tesla vehicles fell short of Environmental Protection Agency (EPA) range estimates in road tests. The EPA evaluates vehicle ranges using laboratory rollers. The New York Times highlighted that all electric vehicles tend to have reduced ranges in colder temperatures, but even in warmer conditions, a Tesla Model Y failed to meet its claimed range by at least 50 miles during Consumer Reports’ testing.
Notably, Tesla has faced penalties in other countries for not disclosing that its electric vehicles have shorter ranges in low temperatures. It’s been reported that Tesla established a special team aimed at addressing complaints about the distance its vehicles can travel on a single charge. This team allegedly informed customers who raised concerns about their EVs that the EPA range figures were mere predictions and that range reduction was due to battery degradation.
When regulatory filings mention “related parties,” they often refer to senior management, company directors, or major shareholders. Earlier this year, reports emerged that Tesla had initiated an internal investigation to determine whether CEO Elon Musk used company resources to support the construction of a glass house. The US Attorney’s Office for the Southern District of New York and the SEC reportedly sought information from the company regarding the house and other personal benefits provided to Musk. requested information concerning
In its SEC filing, Tesla pointed out that various regulatory bodies, including the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, and local, state, federal, and international regulators, have requested information related to multiple investigations and inquiries. Tesla does not have a public relations department that can provide comments.
Tesla emphasized in its filing that, to the best of its knowledge, no government agency investigating the company has concluded that any wrongdoing occurred. However, it acknowledged that the ongoing investigations could potentially have a significant adverse impact on its business, financial results, prospects, cash flows, financial position, or brand, should the government decide to pursue enforcement actions.