Tesla Under SEC Investigation for Not Disclosing Fatal Autopilot Crash to Investors
The Securities and Exchange Commission (SEC) is investigating whether Tesla should have disclosed a fatal accident to its investors.
The accident took place on May 7 and the driver, Joshua Brown, was killed when his Tesla Model S with Autopilot activated crashed into an 18-wheel semi-truck in Florida. Although the American automaker did notify NHTSA of the fatality, it didn’t disclose the crash to investors in a securities filing.
The SEC is scrutinizing whether Tesla should have disclosed the accident as a “material” event, alluding that it’s a development a reasonable investor would consider important. The inquiry by the SEC is reportedly in the preliminary stages and may not lead to any enforcement action by regulators.
SEE ALSO: Another Tesla Owner is Blaming Autopilot for a Crash
A Tesla spokeswoman has responded to the report, saying that the crash didn’t need to be disclosed to investors. The timing of the accident makes it all the more interesting, since Tesla was preparing to sell $2 billion in stock on May 18.
Securities experts believe there is no clearly defined standard on whether Tesla should have reported the accident to its investors, as automakers generally do not disclose traffic fatalities. Helping the American automaker’s case is the fact that Tesla shares didn’t drop following the public report of the fatality and have actually continued to rise since then.
[Source: The Wall Street Journal]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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oooh i wouldn't want to be drawing the attention of the SEC. That's a bit different from the NHTSA
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