Tesla Reportedly Probed by the SEC for Non-Disclosure of Fatal Autopilot Crash

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Automotive Editor

Justin Cupler has specialized as an automotive writer since 2009, and has seen himself published in multiple websites and online magazines. In addition to contributing to CarsDirect, Justin also works as editor in chief for a large performance car online publication. His specialty lays in the high-performance realm, but has a deep love and understanding for all things automotive. Prior to being an automotive writer, he was an automotive technician and manager for six years, but spent the majority of his younger life tinkering with classic muscle cars.

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, Automotive Editor - July 14, 2016

By now, you’ve likely read all about the Tesla Model S crash that claimed the life of a man while the vehicle was allegedly in Autopilot (or semi-autonomous) mode. Following the crash, there were questions about Tesla deciding not to disclose the crash, but Tesla CEO, Elon Musk, was quick to shoot down those questions by saying the crash was “not material,” therefore not requiring disclosure. Apparently, the Securities and Exchange Commission feels differently.

According to a report from Automotive News, the SEC has launched an investigation into Tesla’s non-disclosure of the fatal crash to its investors. At this point, there are no official charges in the works, but rumblings from within the SEC are calling this non-disclosure a possible breach of securities laws. If the SEC deems it was material, then it can bring up charges that the automaker illegally hid the crash from its investors to avoid a potential loss of investor confidence. If this proves to be true, then it could result in serious financial—and possible criminal charges—against the company and its executives.

Tesla claims that it has yet to receive any communication from the SEC. We’ll bring you updates as they become available.

At this point, all we can do is take a wait-and-see approach, but what we do know is that though there are no great lease deals on the 2016 Tesla Model S, the automaker did just release a new, lower-priced Model S 60 that bases from just $51,700 before the federal tax credit. Should you prefer to lease this model, it is available for as little as $737 per month with $6,625 due at signing.

, Automotive Editor

Justin Cupler has specialized as an automotive writer since 2009, and has seen himself published in multiple websites and online magazines. In addition to contributing to CarsDirect, Justin also works as editor in chief for a large performance car online publication. His specialty lays in the high-performance realm, but has a deep love and understanding for all things automotive. Prior to being an automotive writer, he was an automotive technician and manager for six years, but spent the majority of his younger life tinkering with classic muscle cars.

Follow On: Google+ | Website