Tesla (TSLA) SEC investigation: what could happen if there’s a securities law violation
Tesla is reportedly being investigated by the Securities and Exchange Commission (SEC) over a potential securities law breach regarding the disclosure of the fatal Model S crash in Florida while the driver was using the Autopilot. The investigation is believed to be aiming to determine if the news of the fatal crash was a material information during the $2.3 billion secondary offering announced on May 18, just a week after Tesla learned of the crash.
The company confirmed the accident on June 30, when the U.S. National Highway Traffic Safety Administration (NHTSA) announced that it will probe the Autopilot system over the accident.
Former SEC chairman Harvey Pitt commented on the situation earlier this week and gave some insights into what the SEC could be looking to investigate and what could be the consequences for Tesla. Expand