Tesla faces federal investigation: What we know so far
Tesla is being investigated for securities and wire fraud for self-driving claims.
TheStreet’s Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Wednesday, May 8.
Related: Tesla Autopilot recall probe is looking into possible securities, wire fraud
Full Video Transcript Below:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Wednesday was another mixed day on Wall Street. The Dow is up six days in a row - in the longest winning streak of the year. But the S&P 500 was down fractionally, as was the Nasdaq. Investors are contending with a mixed bag of earnings, as well as speeches from Federal Reserve officials, which suggest policymakers are in no rush to lower interest rates.
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Corporate results are keeping investors busy. Up next on the earnings calendar for Thursday: Warner Brothers Discovery, Krispy Kreme, and Yelp.
Turning to one of the biggest stories of the day: Tesla is the subject of an investigation by the U.S. Justice Department and the Securities and Exchange Commission. Authorities are looking into whether Tesla engaged in securities or wire fraud when describing the functions of its Autopilot system, according to a Reuters report.
While Tesla has said Autopilot will help with braking, lane switching, and steering, it has warned the technology should not be considered as fully autonomous. But, authorities are looking into statements made by Tesla and CEO Elon Musk - that might have led investors and customers to believe cars using Autopilot are fully self-driving.
Wire fraud is committed when a person or entity deceives customers in interstate communications. Securities fraud involves the act of misleading investors.
Tesla is also under scrutiny by the National Highway Traffic Safety Administration. The agency is digging into the safety of Autopilot after numerous crashes - some fatal - where Autopilot was in use.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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