SEC investigating Tesla over failure to disclose driverless car crash - reports

 
Caitlin Morrison
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The SEC is looking into whether Tesla should have informed investors of the crash earlier (Source: Getty)

The US Securities and Exchange Commission (SEC) is investigating Elon Musk's Tesla Motors - in particular, looking at whether the tech firm broke the law by failing to disclose a fatal accident involving one of its driverless cars in May.

The accident, which happened in Florida on 7 May, resulted in the death of 40-year-old Joshua Brown. Brown's Tesla Model S car crashed into a truck while in autopilot mode. An investigation has also been launched by the US National Highway Traffic Safety Administration.

The SEC is investigating whether Tesla should have told investors about the car crash immediately, according to a report in the Wall Street Journal.

Although Tesla learned of the accident soon after it occurred, and informed safety regulators on 16 May, the group did not reveal the accident in securities filings - including one from 18 May, announcing a sale of $2bn (£1.5bn) worth of shares.

“Tesla has not received any communication from the SEC regarding this issue,” a company spokeswoman said.

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