Mexican Media Brands
Report: SEC Probing Tesla for Possible Breach in Securities Rules
Tesla Motors Inc. may have violated U.S. securities laws by failing to tell investors that one of its cars was involved in a fatal crash while driving in autonomous mode, a source tells The Wall Street Journal.
#economics
Share
Tesla Motors Inc. may have violated U.S. securities laws by failing to tell investors that one of its cars was involved in a fatal crash while driving in autonomous mode, a source tells The Wall Street Journal.
The source says the Securities and Exchange Commission has launched a preliminary investigation to determine whether Tesla should have divulged the crash ahead of a plan to sell $2 billion in stock in May.
The fatality occurred on May 7 in Florida. Tesla promptly reported the crash to the National Highway Traffic Safety Administration. But it didn’t include the incident in a securities filing on May 18 about the stock sale.
Tesla says it did alert the SEC, but not until a few days after the stock sale when it was able to determine that the company’s so-called Autopilot self-driving feature was engaged at the time of the crash. Tesla publicly revealed the crash on June 30.
Securities experts tell the Journal there is no clearly defined standard to determine whether the May 7 crash was significant enough to warrant disclosure.
RELATED CONTENT
-
On Fuel Cells, Battery Enclosures, and Lucid Air
A skateboard for fuel cells, building a better battery enclosure, what ADAS does, a big engine for boats, the curious case of lean production, what drivers think, and why Lucid is remarkable
-
When Automated Production Turning is the Low-Cost Option
For the right parts, or families of parts, an automated CNC turning cell is simply the least expensive way to produce high-quality parts. Here’s why.
-
Increasing Use of Structural Adhesives in Automotive
Can you glue a car together? Frank Billotto of DuPont Transportation & Industrial discusses the major role structural adhesives can play in vehicle assembly.
