SEC to investigate Tesla
After a fatal crash last May, Tesla executives are on the hook for failing to communicate details of the accident to shareholders. Here’s how reps are managing the crisis.
Sometimes, it’s the most “innovative” companies that fall victim to botched communications.
Especially if they involving neglecting to share pertinent information with shareholders.
Following a fatal crash in May that involved a Tesla driver using the car’s autopilot feature, the Securities Exchange Commission must now determine whether the company should have disclosed the news to its investors.
Despite the investigation and multiple autopilot accidents, Tesla executives say they don’t plan to disable the feature. FREE WHITE PAPER: Help your executive master three basic areas of communication.
The accident that sparked the SEC investigation occurred on May 7, in Florida. It was the first instance of a fatality in a self-driving car.
Though Tesla informed the National Highway Traffic Safety Administration of the circumstances surrounding the crash, according to reports executives did not inform investors.
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