“Tesla Motors is the focus of a Securities and Exchange Commission inquiry for failing to inform its shareholders of a fatal accident involving its Autopilot system, The Wall Street Journal reports.
Tesla is already facing investigations from the National Highway Traffic Safety Administration and National Transportation Safety Board over the death of 40-year-old Joshua Brown in early May. But the SEC investigation is focusing on whether Brown’s death is a “material” event – an event or incident that could influence a shareholder’s actions.
Right now, Tesla is defiant. A spokesperson pointed the WSJ to a blog post “asserting that the May 7 crash didn’t require disclosure to investors.” As we reported previously, Elon Musk claimed the deadly crash “is not material to the value of Tesla.”
To recap, in Tesla’s take-down piece of a Fortune article, the company called the crash a “statistical inevitability” that can’t “alter the conclusion already borne out over millions of miles that the system provided a net safety…”