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The California attorney general’s office is conducting an investigation into Tesla over Autopilot safety issues and false advertising complaints. The investigation involves gathering information from customers and former employees. One customer filed a complaint with the Federal Trade Commission about “phantom braking” and feeling misled by Tesla’s premium driver assistance option. Other customers and a former employee have also been contacted by analysts from the attorney general’s office. Tesla has not yet responded to CNBC’s request for comment. The investigation could have a material adverse impact on Tesla’s business if the government decides to pursue an enforcement action.

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