Get All Access for $5/mo

Tesla Is Under Criminal Investigation Over Self-Driving Car Claims The investigation follows a series of crashes that had Tesla's Autopilot system activated during the accidents.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Justin Sullivan / Staff | Getty Images

Tesla, the clean energy automaker, is under criminal investigation in the U.S. over claims regarding the company's Autopilot system, Reuters reported.

The prosecutors are investigating whether Tesla had falsely deceived customers with unsubstantiated claims involving the vehicle's self-driving abilities.

However, the case may be difficult to prove for the Justice Department because of Tesla's warning and language surrounding the Autopilot system, a source familiar with the matter told Reuters.

Related: Tesla Owners Beware: Your Car Could Get Hacked With a $340 Device You Can Buy Online

The company claims that, while Autopilot allows the car to "drive itself," a passenger must be in the driver's seat for "legal reasons," and cautions that before activating Autopilot, the driver must "keep your hands on the steering wheel at all times" and "maintain control and responsibility for your vehicle."

For the investigation to substantiate its claims that Tesla misled consumers, the prosecutors would need to find internal communication between Tesla and Musk making outright misleading statements about the self-driving capabilities that demonstrate negligence, said former U.S. attorney Barbara McQuade, who is not involved with the case, per Reuters.

"Investigators still have much work to do and no decision on charges is imminent," another source told the outlet.

Still, this isn't the first time Tesla is under legal investigation linked to the automaker's claims that its cars can drive themselves. In August of 2021, the U.S. National Highway Traffic Safety Administration carried out an investigation after a series of accidents (with one fatality) wherein Tesla vehicles crashed while Autopilot was activated.

Related: 'They Overpromised Like Crazy': Some Tesla Owners Say New 'Full Self-Driving' Price Is Too High

Meanwhile, Musk announced last week that Tesla would be releasing "Full Self Driving" technology that would allow consumers to ride "to your work, your friend's house, to the grocery store without you touching the wheel," Reuters reported.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

You Can Now Apply to Renew Your U.S. Passport Online — But There's a Catch

The U.S. State Department officially launched the beta program this week.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.