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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.

WATCH: Tesla’s limited product line makes pricing power key to growth

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Stablecoin issuer Circle applies for a national bank charter

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Stablecoin issuer Circle applies for a national bank charter

Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group’s IPO, in New York City, U.S., June 5, 2025.

Brendan McDermid | Reuters

Stablecoin issuer Circle Internet Group has applied for a national trust bank charter, moving forward on its mission to bring stablecoins into the traditional financial world after the firm’s big market debut this month, CNBC confirmed.

Shares rose 1% after hours.

If the Office of the Comptroller of the Currency grants the bank charter, Circle will establish the First National Digital Currency Bank, N.A. Under the charter, Circle, which issues the USDC stablecoin, will also be able to offer custody services in the future to institutional clients for assets, which could include representations of stocks and bonds on a blockchain network.

Reuters first reported on Circle’s bank charter application.

There are no plans to change the management of Circle’s USDC reserves, which are currently held with other major banks.

Anchorage Digital is the only other crypto company to obtain such a license.

Circle’s move comes after a wildly successful IPO and debut trading month on the public markets. Shares of the company are up 484% in June. The company is also benefiting from a wave of optimism after the Senate’s passage of the GENIUS Act, which would give the U.S. a regulatory framework for stablecoins.

Having a federally regulated trust charter would also help Circle meet requirements under the GENIUS Act.

“Establishing a national digital currency trust bank of this kind marks a significant milestone in our goal to build an internet financial system that is transparent, efficient and accessible,” Circle CEO Jeremy Allaire said in a statement shared with CNBC. “By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure.”

“Further, we will align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar, and support the development of crucial, market neutral infrastructure for the world’s leading institutions to build on,” he said.

Don’t miss these cryptocurrency insights from CNBC Pro:

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Meta shares hit all-time high as Mark Zuckerberg goes on AI hiring blitz

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Meta shares hit all-time high as Mark Zuckerberg goes on AI hiring blitz

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event on Wednesday, Sept. 25, 2024.

Bloomberg | Bloomberg | Getty Images


Meta shares hit a record high on Monday, underscoring investor interest in the company’s new AI superintelligence group.

The company’s shares reached $747.90 during midday trading, topping Meta’s previous stock market record in February when it began laying off the 5% of its workforce that it deemed “low performers.”

Meta joins Microsoft and Nvidia among tech megacaps that have reached new highs of late, all closing at records Monday. Apple, Amazon, Alphabet and Tesla remain below their all-time highs reached late last year or early this year.

Meta CEO Mark Zuckerberg has been on an AI hiring blitz amid fierce competition with rivals such as OpenAI and Google parent Alphabet. Earlier in June, Meta said it would hire Scale AI CEO Alexandr Wang and some of his colleagues as part of a $14.3 billion investment into the executive’s data labeling and annotation startup.

The social media company also hired Nat Friedman and his business partner, Daniel Gross, the chief of Safe Superintelligence, an AI startup with a valuation of $32 billion, CNBC reported on June 19. Meta’s attempts to buy Safe Superintelligence were rebuffed by the startup’s founder and AI expert Ilya Sutskever, the report noted.

Wang and Friedman are the leaders of Meta’s new Superintelligence Labs, tasked with overseeing the company’s artificial intelligence foundation models, projects and research, a person familiar with the matter told CNBC. The term superintelligence refers to technology that exceeds human capability.

Bloomberg News first reported about the new superintelligence unit.

Meta has also snatched AI researchers from OpenAI. Sam Altman, OpenAI’s CEO, said during a podcast that Meta was offering signing bonuses as high as $100 million.

Andrew Bosworth, Meta’s technology chief, spoke about the social media company’s AI hiring spree during a June 20 interview with CNBC’s “Closing Bell Overtime,” saying that the talent market is “really incredible and kind of unprecedented in my 20-year career as a technology executive.”

WATCH: Meta’s AI talent spending spree

Meta escalated talent war with OpenAI

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Joby Aviation stock pops 12% after delivering first flying taxi to UAE

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Joby Aviation stock pops 12% after delivering first flying taxi to UAE

An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023. 

Roselle Chen | Reuters

Joby Aviation stock soared about 12% as the flying air taxi maker got closer to launching a service in the United Arab Emirates.

The electric vertical takeoff and landing, or eVTOL, company said Monday that it delivered its first aircraft to the UAE and has completed piloted flight tests as it readies for a 2026 launch in the region.

“Our flights and operational footprint in Dubai are a monumental step toward weaving air taxi services into the fabric of daily life worldwide,” said founder and CEO JoeBen Bevirt in a release. He called the Middle East nation a “launchpad for a global revolution in how we move.”

Joby’s planned launch in the UAE was announced in February 2024 as part of an agreement with Dubai’s Road and Transport Authority. The deal included exclusive rights to conduct air taxi service in Dubai for six years.

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As part of the project, Joby said in November that it began building one vertiport at Dubai International Airport, with three additional locations slated for Palm Jumeirah and Dubai’s downtown and marina. Joby also announced an air taxi agreement with three Abu Dhabi government departments in 2024.

The California-based company has made other expansion moves in the Middle East. Shares jumped earlier this month after Saudi Arabian firm Abdul Latif Jameel announced a roughly $1 billion investment for up to 300 eVTOLs. The firm participated in Joby’s Series C funding round.

Joby shares have surged more than 32% this year, swelling its market capitalization to over $9 billion.

Demand for air taxis, which take off and land similar to helicopters, has gained momentum in recent years. The service faces regulatory and safety hurdles but has been lauded for its ability to cut traffic congestion and slash emissions.

Earlier this month, President Donald Trump signed an executive order that included a pilot program for testing electric air taxis.

WATCH: Joby Aviation shares pop on Saudi Investment

Joby Aviation shares pop on Saudi Investment

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