Elon Musk faces SEC probe for role in Tesla self-driving claims

Bloomberg

US regulators are investigating Elon Musk’s role in shaping Tesla Inc.’s self-driving car claims, the latest effort by watchdogs to scrutinize the actions of the world’s second-richest person.
The review is part of an ongoing Securities and Exchange Commission probe of the company’s statements about its Autopilot driver-assistance system, according to a person with knowledge of the matter who asked not to be identified discussing aspects of the investigation that haven’t been disclosed.
As Tesla’s chief executive officer, the veracity of Musk’s comments carry particular heft under the agency’s rules. The SEC declined to comment. Musk and his attorney Alex Spiro didn’t respond to requests for comment.
Musk is already clashing with the SEC on several fronts. But the regulator’s Autopilot review directly touches on a business priority that Musk has singled out as crucial to Tesla’s future.
SEC officials are weighing whether Musk may have inappropriately made forward-looking statements, said the person. An investigation by the agency’s enforcement unit doesn’t always lead to consequences, but can result in lawsuits, fines or other civil penalties for companies and executives.
It couldn’t be determined specifically which of Musk’s statements or activities about Autopilot have garnered the attention of the SEC.
Tesla’s driver-assistance technology has for years been a focus of Musk. He personally directed the creation of a 2016 video that may have exaggerated the technology’s capabilities. The video’s promises of eventual fully autonomous, hands-free driving functionality have yet to materialize. In a behind-the-scenes glimpse into Musk’s thinking about the Autopilot video, he told Tesla staff in internal emails in 2016, “I will be telling the world that this is what the car *will* be able to do.” Musk continued, “not that it can do this upon receipt.”
Tesla beats out its competitors on self-driving vehicles because “the car is upgradeable to autonomy,” Musk said during a Twitter Spaces conversation in December.