- Wednesday, October 16, 2024
Tesla Inc. has recently encountered a series of legal challenges and investigations, the company revealed in a filing on Monday. The Justice Department has requested information and issued subpoenas to Tesla, focusing on their Autopilot and Full Self Driving systems - advanced driver-assistance technologies designed for both urban and highway driving.
The requests also extend to other matters such as personal benefits, related parties, vehicle range, and personnel decisions. Notably, The Wall Street Journal reported in August that an investigation was underway regarding the construction of a "glass house" for Tesla CEO Elon Musk in Austin, Texas.
Tesla asserts that, to their knowledge, no wrongdoing has been concluded by any government agency involved in these ongoing investigations.
Additionally, the company is dealing with litigation pertaining to allegations that its repair and service practices violate federal antitrust and warranty laws. In July, Reuters disclosed the existence of a "secret team" within Tesla tasked with suppressing complaints about driving range.
Despite these challenges, Tesla's stock has experienced a significant increase of 75% this year, compared to the S&P 500's advance of about 10%. The stock was up 1.1% in midday trading Monday, potentially breaking a three-day losing streak.
Legal Challenges: Autopilot and Full Self Driving
The Justice Department has requested documents from Tesla relating to their Autopilot and Full Self Driving systems. These advanced driver-assistance technologies are designed for urban and highway driving.
Investigation Into "Glass House" Construction
An investigation is underway after reports emerged that Tesla CEO Elon Musk's "glass house" in Austin, Texas, was being examined.
No Wrongdoing Concluded
Tesla categorically states that no government agency conducting investigations has found any evidence of wrongdoing.
Litigation Over Repair and Service Practices
Tesla is facing legal action regarding allegations that its repair and service practices violate federal antitrust and warranty laws.
Suppression of Complaints
Reports surfaced in July about the existence of a secret team within Tesla tasked with suppressing driving-range complaints.
Stock Performance
Despite these legal challenges, Tesla's stock has seen a significant increase of 75% this year, outperforming the S&P 500's 10% advance. In midday trading on Monday, the stock was up 1.1%, potentially breaking a three-day losing streak.
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