After sacrificing its industry-leading margins to maintain market share, Tesla is banking on unlocking the true potential of its Autopilot’s Full Self-Driving (FSD) capability to drive future profitability and growth. That rosy scenario, however, now appears increasingly jittery as federal and state authorities keep opening new investigations into the Autopilot’s safety and the attendant marketing strategies employed by Tesla.
Tesla’s Autopilot, a bespoke Advanced Driver-Assistance System (ADAS), can steer, accelerate, and brake vehicles on its own. However, currently, the ADAS is primarily intended for highways, and Tesla requires drivers to maintain vigilance on the road. The FSD adds to the Autopilot’s capabilities and can be acquired right now for a $15,000 lump-sum payment or via a monthly subscription that ranges between $99 and $199, depending on the base Autopilot variant.
Back in August 2022, California’s Department of Motor Vehicles (DMV) filed two complaints against Tesla with the state’s Office of Administrative Hearings, accusing the EV giant of misleading customers by falsely touting the “autonomous” capabilities of its electric vehicles in advertisements.
Then, in January 2023, the SEC commenced its investigation into Elon Musk’s relentless promotion of Tesla’s “self-driving” capabilities. It forms a part of the apex financial regulator’s broader inquiry into whether Tesla has violated established rules in promoting the Autopilot and the FSD add-on.
Concurrently, the US Department of Justice is also investigating Tesla’s Autopilot and has already subpoenaed documents from the EV giant that detail the capabilities of its bespoke ADAS.
Of course, Tesla is also facing a number of court cases, including a class-action action lawsuit, in relation to the Autopilot.
California’s Attorney General Has Now Entered the Fray Against Tesla
As per CNBC’s reporting, California’s attorney general (AG) has now opened an investigation into Tesla’s Autopilot and is currently seeking information from customers and former employees regarding the system’s safety issues. The AG is also looking into the false advertisement complaints against Tesla’s ADAS.
Back in August 2022, Greg Wester filed a formal complaint against Tesla’s phantom braking issue – where the Autopilot sometimes slams the brakes without any visible stimulus – with the Federal Trade Commission (FTC). In Q2 2023, an analyst who works in the office of California’s AG reached out to Wester, seeking an interview on issues highlighted in the FTC complaint. This development bolsters CNBC’s contention that an active investigation is currently in the works in the office of California’s AG.
Do you think the growing number of investigations into Tesla’s Autopilot will force the company to adjust its trajectory toward autonomous driving? Let us know your thoughts in the comments section below.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
