Tesla being investigated for securities and wire fraud

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Tesla is being investigated for fraud.

Transcript

00:00 I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on

00:03 the street today. Wednesday was another mixed day on Wall Street. The Dow was up six days in a row

00:08 in the longest winning streak of the year, but the S&P 500 was down fractionally, as was the Nasdaq.

00:15 Investors are contending with a mixed bag of earnings, as well as speeches from Federal

00:19 Reserve officials which suggest policy makers are in no rush to lower interest rates. Corporate

00:25 results are keeping investors busy. Up next on the earnings calendar for Thursday, Warner

00:30 Brothers Discovery, Krispy Kreme and Yelp. Turning now to one of the biggest stories of the day,

00:37 Tesla is the subject of an investigation by the U.S. Justice Department and the Securities and

00:43 Exchange Commission. Authorities are looking into whether Tesla engaged in securities or wire fraud

00:49 when describing the functions of its autopilot system, according to a Reuters report. While

00:54 Tesla has said autopilot will help with braking, lane switching and steering, it has warned the

01:00 technology should not be considered as fully autonomous. But authorities are looking into

01:06 statements made by Tesla and CEO Elon Musk that might have led investors and customers to believe

01:13 cars using autopilot are fully self-driving. Wire fraud is committed when a person or entity

01:20 deceives customers in interstate communications. Securities fraud involves the act of misleading

01:26 investors. Tesla is also under scrutiny from the National Highway Traffic Safety Administration.

01:32 The agency is digging into Tesla's safety record after numerous crashes, including some fatal,

01:37 where autopilot was in use. That'll do it for your daily briefing from the New York Stock Exchange.

01:43 I'm Conway Gittins with The Street.

01:46 [BLANK_AUDIO]

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