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Tesla is under investigation by the Justice Department over its driving range claims, and reportedly over plans to build a glass house for Elon Musk

Oct 24, 2023, 16:49 IST
Business Insider
Elon Musk's EV firm is being investigated by the Department of Justice.Nathan Howard/Getty Images
  • Tesla disclosed in its quarterly report that it had been subpoenaed by the Department of Justice.
  • The company said it was asked for information on personal benefits and vehicle range, among others.
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Tesla is being investigated over its cars' driving range and perks for executives, the company disclosed on Monday.

In its quarterly report to investors, Tesla said it had been subpoenaed by the Department of Justice "regarding certain matters associated with personal benefits, related parties, vehicle range and personnel decisions."

The driving range of Tesla vehicles was at the centre of a Reuters report in July, in which some drivers said their cars couldn't drive as far as was advertised.

A Model 3 owner told Reuters that his car was sometimes getting less than half the advertised 353-mile range. And when he booked a service appointment to check this out, it was canceled after Tesla said "remote diagnostics" determined the battery was fine, per Reuters.

According to Reuters, Tesla had created a "Diversion Team" to cancel range-related appointments after it was inundated by owners who expected better driving ranges based on advertised estimates.

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In August, three Tesla owners brought a class-action lawsuit against the company, accusing it of "false advertising of its electric vehicles' range."

According to The Wall Street Journal, Tesla's disclosure of an investigation related to "personal benefits" pertains to a secret project which involved building a glass house for Elon Musk.

The Journal previously reported in August that the DoJ and Securities and Exchange Commission were looking into the project, known internally as "Project 42," and that Tesla board members had investigated whether company resources were misused for it.

In Monday's filing, Tesla said: "To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred."

Tesla did not immediately respond to Insider's request for comment.

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