Federal Investigators Widen Tesla Inquiry, Company Says

Federal Investigators Widen Tesla Inquiry, Company Says

The Department of Justice has expanded its inquiry into Tesla’s business practices to include how far its vehicles can travel on a full charge and “personal benefits” to high-ranking executives or large shareholders, the company said without elaborating.

The disclosure followed recent news reports that the carmaker appears to have misled customers about how far its vehicles could travel before needing to be plugged in.

Tesla also said in a regulatory filing that the government had subpoenaed documents related to “personal benefits” and unidentified “related parties,” a term that often refers to top management, company directors or large shareholders.

The U.S. attorney’s office in New York has looked into whether funds were misused in a planned house for Elon Musk, the company’s chief executive, near Tesla’s factory in Austin, Texas, The Wall Street Journal reported in August. The U.S. attorney’s office declined to comment on Monday.

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