SEC Investigation Start on Tesla for a possible Law Breach.
Tesla will be facing SEC investigation on Auto-pilot accident.
Tesla has gotten into trouble with its Autopilot crash which happened a few weeks early. The crash resulted in a death which is the first for the motor company’s autonomous drive system. The Autopilot feature was introduced by Tesla, last year in October.
These days, the Securities and Exchange Company SEC is carrying out an investigation on Tesla to detect a possible security breach related to this fatal accident. The company is looking for evidence which by any means would have resulted in withholding or manipulation of data which was provided.
The accident which caused this upheaval happened on May 7. In the accident, the car driver Joshua Brown who was a 40 year-old Tesla driver, died on the impact with a semi-truck. His car collided with the truck which was pulled in front of him on Florida Highway while he was driving it on autopilot mode.
Tesla reported this incident to NHTSA for car-safety regulatory. The company needed to run an investigation in order to see if the car was driven on Tesla’s autopilot mode or something else. However the company did not report the incident to SEC which is against the law.
According to WSJ, Tesla has said that this crash was the first in more than 130 miles driven by Tesla’s autopilot mode used in its cars. SEC spokesperson offer that Tesla is yet to receive any notification from SEC. However the company might be headed towards an investigation. One cannot pin point the causes of the accident exactly at the moment as the investigation is in its early stages.
Tesla didn’t disclose this accident while filing for security which made SEC to take an action against them.