The California attorney general’s office is currently conducting an investigation into Tesla. They are seeking information from customers and former employees regarding Autopilot safety issues and false advertising complaints, as reported by CNBC.
An individual named Greg Wester, who owns a 2018 Tesla Model 3, filed a complaint with the Federal Trade Commission in August 2022. The complaint was related to “phantom braking,” which refers to sudden, automatic braking by the vehicle without any apparent reason. Wester experienced this issue while using Tesla’s driver assistance systems, known as Autopilot, on the highway.
Wester also expressed feeling deceived by Tesla after paying a significant amount of money for the company’s premium driver assistance option, which is marketed as Full Self Driving capability (FSD) in the U.S.
In the second quarter of this year, an analyst from California Attorney General Rob Bonta’s office contacted Wester to request an interview about the concerns raised in the complaint. Wester shared the voicemail from the analyst with CNBC and provided a copy of the FTC’s automated response acknowledging receipt of his complaint.
CNBC has verified that the person who called from the California AG’s office is indeed an analyst. The government employee did not express a need for confidentiality in the voicemail.
Phantom braking has been a well-known issue reported by Tesla customers to federal agencies for several years. This problem can put drivers at risk of being rear-ended and other potential dangers.
Tesla CEO Elon Musk has consistently promised investors and customers that their vehicles would become self-driving or autonomous over time through over-the-air software updates. However, as of now, Tesla has not delivered a self-driving car and only offers “level 2” systems that require an attentive driver behind the wheel ready to take control when necessary.
Wester, in an interview, suggested that Tesla should give customers the option to receive a full refund for Autopilot features if they are dissatisfied with the product. He argued that when purchasing FSD, they expected a fully autonomous product but received a driver monitoring product with partial autonomy.
Wester is not the only Tesla customer contacted by analysts from the attorney general’s office after raising safety and related concerns.
In July 2023, a former Tesla employee, whose family owns a 2021 Model 3 with the FSD option, received an email from a senior legal analyst in the California AG’s consumer protection division. The email requested information for an ongoing investigation into Tesla. The former employee, who has publicly expressed Autopilot and FSD safety concerns in the past, asked to remain anonymous to protect their privacy.
Requests for comment from Tesla and the California attorney general’s office have not been answered. The FTC declined to comment.
It is not uncommon for law enforcement offices in the U.S. to access consumer complaints filed with the FTC through the Consumer Sentinel Network, an online database. This network allows law enforcement members to review reports directly submitted by consumers and other shared reports from data contributors, as explained on the FTC’s website.
In Tesla’s second-quarter financial filing, they acknowledged receiving information requests from regulators and governmental authorities such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice (DOJ), and various state, federal, and international agencies.
While Tesla has previously mentioned requests from the DOJ regarding Autopilot and FSD features, they have not disclosed the investigation by the California attorney general.
Tesla stated in the filing that if the government decides to take enforcement action, it could have a material adverse impact on their business, financial position, cash flows, prospects, and results of operation.
California is Tesla’s largest market for electric vehicles in the U.S. and is also where the company’s first vehicle assembly plant is located in Fremont. In 2021, Tesla relocated its corporate headquarters from Palo Alto, California to Austin, Texas.
The California Department of Motor Vehicles has been investigating Tesla’s driver assistance systems for years. They have formally accused the company of deceptive practices in the marketing of Autopilot and FSD technology.
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