‘Investigating EV range claims may cause material adverse impact on business’ says Tesla to US DoJ

Tesla Inc. has confirmed that it received requests for information and subpoenas from the United States Department of Justice (DOJ) concerning potential personal benefits violations, the advertised range of its vehicles, and personnel decisions during the third quarter of this year. The electric vehicle manufacturer revealed this information in a filing submitted on Monday. This revelation comes after The Wall Street Journal reported in September that federal prosecutors were delving into the perks offered to CEO Elon Musk, a probe reaching as far back as 2017, which includes an enigmatic project known as the “glass house” for Musk. Furthermore, earlier this year, Reuters disclosed that Tesla had formed a specialized “diversions team” to sidestep customer complaints regarding vehicle range. The filing emphasized the possibility of a “material adverse impact on our business” if the government chooses to pursue an enforcement action. It’s important to note that, to the best of Tesla’s knowledge, any ongoing investigations have not yet uncovered any wrongdoing. These subpoenas add to the growing list of government investigations surrounding the electric vehicle manufacturer. The DOJ is also examining claims made by Tesla regarding its purported self-driving technology. In September, the United States Equal Employment Opportunity Commission filed a lawsuit against Tesla, alleging that the company had been “tolerating widespread and ongoing racial harassment of its Black employees” at its Fremont, California, plant.