Subscribe to Breaking News emails

You have successfully subscribed to the Breaking News email.

Subscribe today to be the first to to know about breaking news and special reports.

SEC Investigating Tesla for Possible Securities Law Breach: Report

by Anita Balakrishnan, CNBC / / Source: CNBC.com

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

The Securities and Exchange Commission is investigating Tesla Motors over a potential securities law breach, the Wall Street Journal reported.

The early stage investigation comes after Tesla didn't notify investors of a fatal crash involving its Autopilot function, an unnamed source told the Journal.

A spokesperson for the electric vehicle maker told CNBC that Tesla has not received any communication from the SEC regarding the information in the Journal report.

The May 7 crash first came to light after the National Highway Traffic Safety Administration announced a preliminary investigation.

The crash, when a tractor trailer drove across a divided highway where a Tesla Model S was driving in autopilot mode, resulted in the death of driver Joshua Brown, the Journal reported. It was the first known fatality where Autopilot was activated, Tesla has said.

Earlier this month, Fortune magazine emailed Tesla CEO Elon Musk about whether the company disclosed the crash before an offering of $2 billion in Tesla stock on May 18. He responded it was "not material to the value of Tesla." The company then responded in a longer post, calling the Fortune article "misleading" and "fundamentally incorrect:"

"Given the fact that the 'better-than-human' threshold had been crossed and robustly validated internally, news of a statistical inevitability did not materially change any statements previously made about the Autopilot system, its capabilities, or net impact on roadway safety," said the company statement.

Shares of Tesla were down more than 1 percent in after-hours trading Monday. The SEC declined to comment to CNBC.

Read More From CNBC: Tesla's Master Plan is Part of a Significant Strategy Shift, Says Tesla Analyst

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.
MORE FROM news

Have feedback?

How likely are you to recommend nbcnews.com to a friend or colleague?

0 = Very unlikely
10 = Very likely
Please select answer

Is your feedback about:

Please select answer

Leave your email if you’d like us to respond. (Optional)

Please enter a valid email address

Thank you!

Your feedback has been sent out. Please enjoy more of our content.

We appreciate your help making nbcnews.com a better place.