Elon Musk is being investigated by the SEC over claims and potential forward-looking statements he has remodeled Tesla’s (NASDAQ:TSLA) self-driving program.
Sources told Bloomberg the review is an element of a broad probe into Tesla’s statements on the Autopilot system. Musk reportedly had a direct hand within the creation of a 2016 company video that will have exaggerated Autopilot’s capabilities. He has also made various statements subsequently over the progress and promise of the fully autonomous technology which may be under review.
Individually, the National Highway Traffic Safety Administration has two energetic investigations into Autopilot’s technology and potential flaws.
The most recent Autopilot twist did little to dent Tesla’s share price rally on Friday. TSLA was up 11.23% at 3:57 p.m. and traded at its highest level because the early a part of December. The EV stock continues to be well below the 100-day and 200-day moving averages.
In search of Alpha writer Poonam Arora dug into why Tesla is a buy on fundementals.