Tesla And 'The Boy Who Cried FSD' Reportedly Under Investigation By California Attorney General

The office of the California Attorney General is reportedly launching an investigation into Tesla Inc TSLA, focusing on safety issues associated with the company’s Autopilot feature and allegations of false advertising.

What Happened: The investigation was triggered by numerous customer and former employee complaints, according to CNBC, which initially reported the story.

Among those approached by the Attorney General’s office is Greg Wester, owner of a 2018 Tesla Model 3, who lodged a complaint with the Federal Trade Commission (FTC) in August of last year, reporting “phantom braking” while using Tesla's Autopilot on the highway.

In addition to safety concerns, Wester indicated feeling misled by Tesla, CNBC said, claiming he paid thousands of dollars for the company’s premium driver assistance option, touted as Full Self Driving capability (FSD) in the U.S., which he says has not lived up to its promises.

Currently, Tesla sells “level 2” systems requiring an alert driver ready to take control at any moment.

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Why It Matters: Tesla CEO Elon Musk in early July at the 2023 World Artificial Intelligence Conference in Shanghai said that the company will fully realize autonomous vehicles "later this year," and referred to himself as “the boy who cried FSD” during Tesla's recent earnings call.

Another individual approached by the Attorney General's office is a former Tesla employee who expressed safety concerns about Autopilot and FSD publicly and within the company, CNBC said.

Tesla, in its financial report for the second quarter, confirmed that it has been solicited for information by a variety of regulatory and governmental bodies. These include the Department of Justice, the SEC, the National Transportation Safety Board, the National Highway Traffic Safety Administration, and several other state, federal, and international agencies.

The company did not disclose the ongoing investigation by the California Attorney General.

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