10:25 AM EDT, 05/08/2024 (MT Newswires) -- (Updates to add details after the first paragraph.)

US prosecutors are looking into whether Tesla (TSLA) committed wire or securities fraud by allegedly misleading consumers and investors about the self-driving capabilities of its vehicles, Reuters reported Wednesday, citing three people familiar with the matter.

Tesla's autopilot and self-driving systems are not fully autonomous, and prosecutors are investigating statements suggesting that the cars can drive themselves, according to the report.

The US Securities and Exchange Commission is also looking into Tesla's representations about these systems to investors, Reuters quoted one of the sources as saying.

Tesla, the US Department of Justice, and the US SEC did not immediately respond to requests for comment from MT Newswires.

Shares of Tesla were down nearly 3% in recent Wednesday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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