November 22, 2024

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The company says federal investigators are expanding their Tesla investigation

The company says federal investigators are expanding their Tesla investigation

The Justice Department has expanded its investigation into Tesla’s business practices to include how far its vehicles can travel on a full charge and “personal benefits” for high-level executives or major shareholders, the company said without elaborating.

The revelation comes on the heels of recent news reports that the automaker misled customers about how far its cars could travel before needing to be plugged in.

Tesla also said in a regulatory filing that the government had requested documents related to “personal benefits” and unspecified “related parties,” a term that often refers to senior management, company directors or major shareholders.

The Wall Street Journal reported in August that the US Attorney’s Office in New York looked into whether funds were misused at a home planned for Elon Musk, the company’s CEO, near Tesla’s factory in Austin, Texas. The US Attorney’s Office did not immediately respond to a request for comment on Monday.

Tesla did not respond to a request for comment.

“To our knowledge, no government agency in any ongoing investigation has found any wrongdoing,” the company said in its quarterly report to the Securities and Exchange Commission. Tesla said it is cooperating with authorities.

Reuters and Consumer Reports reported that Tesla cars failed, in road tests, within the range indicated by the Environmental Protection Agency, which tests cars on rollers in the laboratory. Automakers have some discretion in how they configure cars for tests and can influence the results.

The entire range of battery-powered cars suffers from cold weather, but the Tesla Model Y SUV does so. Consumer Reports Tested at least 50 miles of claimed range even in warm weather

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The Ford Mach-E and Volkswagen ID.4 SUVs exceeded their claimed warm-weather ranges when tested by Consumer Reports under similar conditions as a Tesla. The Hyundai Ioniq 5 came within two miles of the EPA range.

Tesla previously revealed that the Department of Justice had issued subpoenas to obtain documents related to its self-driving program. Tesla is the target of lawsuits alleging the software played a major role in accidents causing deaths and injuries and falls short of claims about its performance made by Mr. Musk and the company.

Tesla said the National Highway Traffic Safety Administration, the National Transportation Safety Board, the Securities and Exchange Commission, and several domestic and international authorities also requested information, without providing details.

Tesla shares have fallen by 13 percent since Wednesday, when the company announced that third-quarter profits fell by 44 percent after it reduced the prices of its models.