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Tesla under new investigation by DOJ as feds say Elon Musk’s cars lied about driving ranges and set up a ‘diversion team’ to cancel appointments from EV owners who complained
- Tesla has received subpoenas over, ‘personal benefits, related parties, vehicle range and personnel decisions’
- Additional investigations claim Tesla created a secret team to suppress complaints from customers
- Musk has struggled to explain his company’s poor economic performance and said a lawsuit over a data breach could damage the company financially
Tesla is the target of another DOJ investigation as, this time, federal officials say the Elon Musk owned company lied about the vehicles’ driving ranges.
The latest investigation adds to a pile of probes into Musk’s company, including one that alleged they set up a secret team to suppress complaints from customers.
Musk’s electric vehicle company revealed in federal filings they have received subpoenas ‘regarding certain matters associated with personal benefits, related parties, vehicle range and personnel decisions.’
The latest investigation into Tesla, comes on the heels of the manufacturer’s earning call, where the world’s richest man struggled to explain the poor economic performance.
During an earnings call last week, Musk was ‘close to tears’ and ‘blamed high interest rates’ as profits fell to $1.85 billion, sending shares tumbling 15 percent at the time.
Tesla revealed it has received said the Justice Department is investigating claims it lied about driving ranges
Tesla owner Elon Musk was ‘close to tears’ defending his company’s poor performance in an investor meeting. His company is now the target of several DOJ investigations
The latest probe alleges Musk ordered the automaker to ‘rig its electric cars’ dashboards’ to show an inflated range they could travel before running out of charge.
The distance electric vehicles can travel before needing to charge has long been a sticking point of acceptance across the car-buying market.
The DOJ investigation also claimed a ‘diversion team’ was set up to suppress thousands of complaints from owners disappointed by their vehicle’s performance.
Employees were reportedly tasked with canceling as many service appointments as possible related to driving range problems.
Tesla owners have filed a lawsuit against the company alleging automatic software updates cut their cars driving range by 20 percent, forcing some to spend $15,000 on new batteries.
In April, a shocking report said Tesla employees would regularly share personal videos of customers that were recorded on the car’s integrated cameras.
Staffers said those who shared the funniest clips were rewarded with promotions and the use of company cars.
A SEC filing by Tesla said, ‘during the second quarter of 2023, a foreign news outlet reported that it obtained certain misappropriated data including, purportedly, among other things, non-public Tesla business and personal information.’
Tesla said they notified all the individuals potentially affected by a data leak and a class action lawsuit against the company over it could have negative impacts on business.
‘If an unfavorable ruling or development were to occur in these or other possible legal proceedings, risks and claims, there exists the possibility of a material adverse impact on our business, results of operations, prospects, cash flows, financial position or brand,’ said the company.
Federal data shows there have been at least 42 investigations into Tesla crashes since 2016, including 23 fatalities, two which were pedestrians and two motorcyclists.
Tesla owners have filed a lawsuit against the company alleging automatic software updates cut their cars driving range by 20 percent
The DOJ is also probing Musk over Tesla perks he received since 2017, including company resources to build a secret home
Investigations from the National Highway Traffic Safety Administration all involve cases where driver systems such as Autopilot or so-called ‘Full Self-Driving’ were suspected of being used.
In January, Tesla disclosed that the Justice Department had requested documents related to its Autopilot and ‘Full Self-Driving’ features.
The DOJ is probing Musk over Tesla perks he received since 2017, including company resources to build a secret home.
The SEC has also opened a civil investigation into the claim company funds were used to build a glass mansion near the company Texas headquarters.
Dubbed ‘Project 42’ and described inside the company as a mansion for Musk, the plans involved a dramatic glass-walled building near Tesla’s gigafactory in Austin, the Journal previously reported.
DailyMail.com has reached out to Tesla for comment.
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