Tesla being investigated for securities and wire fraud
I’m Conway Gibbs, reporting from the New York Stock Exchange. Here’s what we’re watching on the Street today. Wednesday was another mixed day on Wall Street. The Dow was up six days in a row in the longest winning streak of the year, but the S&P 500 was down fractionally, as was the NASDAQ. Investors are contending with a mixed bag of earnings, as well as speeches from Federal Reserve officials, which suggest policy makers are in no rush to lower interest rates. Corporate results are keeping investors busy. Up next on the earnings calendar for Thursday. Warner Brothers Discovery, Krispy, Kreme, and Yelp. Turning now to one of the biggest stories of the day, Tesla is the subject of an investigation by the US Justice Department and the Securities and Exchange Commission. Authorities are looking into whether Tesla engaged in securities or wire fraud when describing the functions of its Autopilot system, according to a Reuters report. While Tesla has said Autopilot will help with breaking lane switching and steering, it has warned the technology should not be considered as fully autonomous. But authorities are looking into statements made by Tesla and CEO Elon Musk that might have let investors and customers to believe cars using Autopilot are fully self driving. Wire fraud is committed when a person or entity deceives customers in Interstate communications. Securities fraud involves the act of misleading investors. Tesla is also under scrutiny from the National Highway Traffic Safety Administration. The agency is digging into Tesla safety record after numerous crashes. Including some fatal where Autopilot was in use. That’ll do it for your daily briefing from the New York Stock Exchange. I’m Conway Gittens with the street.