News broke out recently that the U.S. Securities and Exchange Commission (SEC) is reportedly investigating Elon Musk for how Tesla has been promoting their self-driving capabilities. This comes on the heels of a Wall Street Journal report that suggests he’s being probed for potential fraud surrounding his tweets and other posts showing off Tesla’s efforts in the area.
Tesla has been making progress on the development of its self-driving technology, which includes an Autopilot feature and a Full Self-Driving (FSD) option. Musk has been an enthusiastic promoter of this technology, regularly tweeting success stories and sharing data from the system.
However, these claims may have been misleading investors, leading to the SEC’s investigation. Musk has previously acknowledged that the company still has a long way to go before it can achieve true autonomy and should be cautious about how it conveys this message. However, he has been making more ambitious statements in recent months. This has resulted in the SEC indicating it is looking into whether these statements were accurate and within the bounds of the Securities Exchange Act.
The focus of the probe reportedly centers on the timeline and specifics related to Tesla’s self-driving claims. This could include the capabilities of the Autopilot system and how Musk has been communicating about it. Additionally, the investigation may also include into FSD package. Musk has promised a lot of features for this option and has been pushing for a rollout next year, but there is still skepticism around whether this will happen and when.
Even though this investigation may be a major setback for Musk, it’s also seen as a necessary evil to ensure that companies and their executives are not taking advantage of investors.
It’s too early to say what the outcome of the investigation will be, but it is sure to have a significant impact on Tesla’s image and the future of their self-driving technology. With Musk under intense scrutiny, it’s likely that he will be more mindful of how he talks about the company’s advancements.
