California
Tesla under investigation by California attorney general over Autopilot safety, marketing
The California attorney general’s office is investigating Tesla, seeking information from customers and former employees about Autopilot safety issues and false advertising complaints, CNBC has learned.
Greg Wester, the owner of a 2018 Tesla Model 3, filed a complaint with the Federal Trade Commission in August 2022, regarding “phantom braking” — sudden, automatic braking by a car for no apparent reason — that he would experience when using the company’s driver assistance systems, or Autopilot, on the highway.
Wester also told the FTC that he felt misled by Tesla after paying thousands of dollars for the company’s premium driver assistance option, marketed as Full Self Driving capability (FSD) in the U.S.
By the second quarter of this year, an analyst with California Attorney General Rob Bonta’s office left Wester a voicemail seeking to interview him about the issues referenced in the complaint. Wester shared the voice message with CNBC, and provided a copy of the FTC’s automated response acknowledging receipt of his complaint.
CNBC confirmed that the person who called from the California AG’s office works as an analyst there. The government employee did not request confidentiality in the voicemail.
Phantom braking, a known issue that Tesla customers have complained about to federal agencies for years, can leave drivers susceptible to being rear-ended, among other dangers.
Musk has long promised investors and customers that features and functions would be added to Tesla vehicles over time, via over-the-air software updates, that would turn their cars into self-driving or autonomous vehicles. On Tesla’s second-quarter earnings call, Musk called himself “the boy who cried FSD.”
To this day, Tesla has not delivered a self-driving car and sells “level 2” systems, which require an attentive driver behind the wheel who is ready to steer or brake at any time.
“Tesla should offer customers the option to receive a full refund of Autopilot features if they are unsatisfied with the product,” Wester said in an interview. In purchasing FSD, he said, “we bought a full autonomy product and we received a driver monitoring product with partial autonomy.”
Wester isn’t the only Tesla customer to be contacted by analysts with the attorney general’s office after voicing safety and related concerns.
A former Tesla employee, whose family owns a 2021 Model 3 with the FSD option, was contacted by email in July 2023 by a senior legal analyst in the California AG’s consumer protection division. In the email, reviewed by CNBC, the analyst said she was seeking information from the person for an unspecified but active investigation into Tesla.
The former Tesla employee, whose identity is known to CNBC, asked to remain unnamed to protect his privacy. The person had previously voiced concerns about Autopilot and FSD safety issues at Tesla and publicly.
Tesla and the California attorney general’s office didn’t respond to requests for comment. The FTC declined to comment.
It’s not unusual for law enforcement offices in the U.S. to obtain consumer complaints filed to the FTC via an online database called the Consumer Sentinel Network. According to the federal agency’s website, the network “gives law enforcement members access to reports submitted directly to the Federal Trade Commission by consumers,” and to other reports shared by “data contributors.”
In its second-quarter financial filing, Tesla said it receives “requests for information from regulators and governmental authorities, such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice (‘DOJ’) and various state, federal, and international agencies.”
While the company has previously identified “requests from the DOJ for documents related to Tesla’s Autopilot and FSD features,” Tesla has not disclosed that the California attorney general was investigating the company.
“Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows and financial position,” Tesla said in the filing.
California has been Tesla’s largest U.S. market for its electric vehicles and is home to the company’s first vehicle assembly plant in Fremont. The company relocated its corporate headquarters to Austin, Texas from Palo Alto, California, in 2021.
The California Department of Motor Vehicles has been investigating Tesla’s driver assistance systems for years, and has formally accused the company of deceptive practices in marketing its Autopilot and FSD technology.
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How California’s high-speed rail line will advance in 2025
California’s high-speed rail project, which aims to connect San Francisco and Los Angeles with a 494-mile route capable of speeds up to 220 mph, aims to continue construction in 2025.
Phase 1 of the project focuses on linking San Francisco in the north to Anaheim via Los Angeles in the south, with plans to extend the line north to Sacramento and south to San Diego in Phase 2.
The California High-Speed Rail Authority, which is overseeing the project says it has already generated significant economic benefits, including creating over 14,000 construction jobs and involving 875 small businesses.
But despite its transformative goals, the project remains politically contentious, with critics questioning its costs and viability. It has been in development since voters approved funding in 2008 and has faced delays, cost increases, and shifting timelines.
Work Planned for 2025
In a statement to Newsweek, the California High-Speed Rail Authority outlined its planned work for 2025, which focuses on continuing construction in the Central Valley between Merced and Bakersfield.
The 171-mile segment between Merced and Bakersfield will be the first part of the line to be operational, with services expected to start between 2030 and 2033. Of that section, 119 miles are currently under construction.
Of the planned structures in the Central Valley section, 85 are underway or completed out a total of 93 on the segment. Work will continue on these structures as well as on the tracks capable of handling high-speed trains.
By the end of 2025, civil construction on the 119-mile segment currently underway is expected to be completed and construction will begin on the next stretches to Merced and Bakersfield.
In 2025, the authority also plans to advance design and begin construction on its stations in the Central Valley. It also expects to select a manufacturer for the trains.
Although the initial operating segment will only run 171 miles from Merced to Bakersfield, environmental clearances have been obtained for 463 miles of the 494-mile Phase 1 route, completing the stretch between San Francisco and Los Angeles. Only the Los Angeles-to-Anaheim section is still awaiting approval.
The Authority said it plans to publish its draft environmental impact report for the Los Angeles-to-Anaheim section in 2025, a key milestone for the eventual full-approval of Phase 1.
More than $11 billion has been invested to date, with funding sources including state bonds, federal grants, and proceeds from California’s carbon emission trading auctions.
The authority has not yet received funding to construct the segments westwards from the Central Valley to the Bay Area or southwards to Los Angeles.
Despite this, the authority said it was committed to pushing on.
“California is the first in the nation to build a true high-speed rail system with speeds capable of reaching 220 mph,” the Authority told Newsweek. “The Authority remains committed and aggressive in moving this historic project forward while actively pursuing additional funding.”
Political Opposition to the Project
Despite ongoing progress, the high-speed rail project continues to face political opposition, particularly from Republican leaders.
While President Joe Biden’s administration has invested billions in it since 2021, the incoming Republican administration, which will control the House of Representatives, the Senate, and the presidency, is unlikely to continue funding it at the same level.
Representative Sam Graves of Missouri, who chairs the House Transportation and Infrastructure Committee, has criticized the project’s costs and funding strategies.
In a statement to Newsweek, Graves described the rail line as a “highly troubled project” and raised concerns about its reliance on government subsidies.
He pointed out that the current funding supports only a limited segment between Merced and Bakersfield, which he estimated will cost $35 billion.
“Full cost estimates [for Phase 1, between San Francisco and Anaheim] now exceed $100 billion and growing,” Graves said, calling for a comprehensive review of the project before any additional funding is allocated.
“California high-speed rail must have a plan and prove that it can wisely and responsibly spend government money—something it’s failed to do so far.”
The congressman stated that over the next four years, he would oppose any further federal funding for the California high-speed rail project.
Instead, Graves advocated for efforts to redirect unspent funds and focus on improving existing transportation infrastructure, such as Amtrak.
Graves also emphasized the need for private-sector involvement in future rail projects, citing Brightline’s operations in Florida and Las Vegas as a successful example of private investment.
While Graves acknowledged the potential of high-speed rail, he argued that the California project has failed to meet the necessary criteria for viability and local demand.
The authority told Newsweek it would engage with the federal government to seek other funding sources.
“We continue to explore strategies aimed at stabilizing funding, potentially allowing the program to draw private financing and/or government loans,” it said.
California
Hawaii resident flies to California to clear name from identity theft
HONOLULU (HawaiiNewsNow) – A Honolulu man who had his identity stolen had to fly to California to clear his name. He acted quickly to stop his bank account from being completely drained.
Jamie Dahl said he’s speaking out because identity theft can happen to anyone and he’s not sure how his personal information was stolen.
“I’m still mystified how he pulled it off,” Dahl said.
In late November, Dahl found some fraudulent charges on his credit card so he ordered a replacement card.
Two weeks later, he says went to his online bank account with Bank of America and discovered his identity had been stolen. The hacker had account access for instant money transfers.
“My phone number is missing, my email is missing, my mailing address. I live in Honolulu. It’s Mililani,” Dahl said.
He knew he was in trouble.
Dahl said two days after his discovered his identity had been stolen, he had to fly to California to clear his name because there are no Bank of America branches in Hawaii.
He brought several forms of ID to re-authenticate himself.
“It was just an incredible ordeal,” he said.
“The bad guys are shopping just like everybody else for Christmas,” said former HPD Deputy Chief John McCarthy, who investigated cybercrime.
McCarthy says check your bank account daily and having a local bank is helpful.
“If you don’t have a local bank, you are that much father away. I’ve had problems with banks that are on the East Coast,” he said.
“It takes a day to communicate with them, a day to get a response. That’s a lot of damage you can do in 24, 48, 72 hours,” McCarthy added.
McCarthy says most banks have streamlined their re-authentification process so you don’t have to see them in person.
Hawaii News Now contacted Bank of America to find out their process and are waiting to hear back.
Copyright 2024 Hawaii News Now. All rights reserved.
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