Tesla Under DOJ Investigation Over Misleading Electric Vehicle Driving Range Claims

DOJ investigation expands as Tesla faces allegations of misleading customers about its vehicles' driving ranges, potentially causing "material adverse impact," while federal prosecutors investigate "personal benefits" provided to CEO Elon Musk.

The U.S. Department of Justice (DOJ) is investigating claims that Tesla has been misleading customers about the driving range of its vehicles. Subpoenas have been sent to the company, demanding information related to these allegations.
The DOJ is also investigating 'personal benefits' provided to Tesla CEO Elon Musk and other personnel decisions at the company. This expansion of the probe followed a Reuters report alleging that Tesla had begun displaying inaccurate battery estimates on its car dashboards, a practice reportedly initiated by Musk a decade ago.
The investigation could potentially lead to substantial negative impacts on Tesla if the U.S. government decides to pursue enforcement action. Despite this, Tesla maintains that no wrongdoing has occurred.
Reports have surfaced of a special 'diversion team' within Tesla aimed at cancelling appointments from drivers complaining about the range of their vehicles. In August, several drivers sued the company claiming that their cars were only achieving half their advertised range.
Tesla has also been scrutinized over its self-driving car technology, with US officials investigating funds used to build a glass house for Musk in Texas. Despite these controversies, Tesla shares are up 97 percent for the year.