Elon Musk’s Tesla under investigation over ‘rosy’ vehicle distance claims
Federal prosecutors are looking into Tesla performance claims after suggestions the electric carmaker exaggerated the potential driving distance of its vehicles, the Wall Street Journal reported on Wednesday.
Reuters reported in July that Tesla cars often fail to achieve their advertised range estimates and projections reported by the cars’ own equipment, citing experts who tested or studied them.
The company wrote algorithms about a decade ago to create “rosy” in-dash driving range estimates, according to sources, and set up a “diversion team” to cancel range-related service appointments.
The Austin, Texas-based electric carmaker deployed the team because its service centers were inundated with appointments from owners who had expected better performance based on the company’s advertised estimates and the projections displayed by the in-dash range meters of the cars themselves, according to several people familiar with the matter.
The U.S. Attorney’s office in Manhattan is also investigating Tesla’s use of company funds on a secret project to build a giant glass house for chief executive Elon Musk, the Journal reported on Wednesday, citing people familiar with the matter.
Prosecutors with the US Attorney’s Office in Manhattan have sought information about personal benefits paid to Musk, and how much Tesla spent on the project, the report claims.
A spokesperson for the federal prosecutors’ office declined to respond to Reuters request for comment on the probes. Musk did not immediately respond to Reuters requests for comment.
No dollar figures were disclosed regarding the probe of the house, which the newspaper said was near Austin, Texas.
The Journal reported in July that Tesla board members had investigated whether company resources were misused on the effort.
The U.S. Securities and Exchange Commission has also opened a civil probe, the Journal reported. An SEC spokesperson said the agency does not comment on the existence or nonexistence of a possible investigation.
The probes are in their early stages and may not lead to charges, the Journal said.
Prosecutors focused on the house project were seeking information about personal benefits to Musk, the world’s richest man, as well as how much Tesla spent on the project and what it was for, the Journal reported.
Reuters