Voltswagen Hoax May Land VW Into Trouble With U.S. Regulators For Distorting Stock Prices

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While we’re all partial to a good April Fools jape, this year, a line appears to have been crossed. Earlier this week, Volkswagen confirmed to many reporters and news outlets, including CarScoops, that reports of a name change were indeed accurate. The switch that was initially confirmed as true was that VW’s US subsidiary would be renamed as “Voltswagen of America” — signifying the German automaker’s commitment to electric vehicles.

VW has since retracted their initial statement, claiming it to be nothing more than an April Fools’ Day joke. They said it was merely a marketing tactic to draw attention to the VW ID4. But the fact that they confirmed that the news was indeed true to multiple news outlets has raised concerns.

While we’re used to automakers issuing their own well-intended pranks year by year, the deceptive statements of VW saw not only a confirmation of the initial “leak” but that VW went so far as to email reporters of the name change in a since-deleted press release. In this press release Volkswagen of America’s president and CEO, Scott Keogh, was quoted as saying, “We might be changing out our K for a T, but what we aren’t changing is this brand’s commitment to making best-in-class vehicles for drivers and people everywhere.”

Read: Volkswagen Lied To Us About Name Change, Was A Miscalculated April Fool’s Joke

We know, 66 is an unusual age to change your name, but we’ve always been young at heart. Introducing Voltswagen. Similar to Volkswagen, but with a renewed focus on electric driving. Starting with our all-new, all-electric SUV the ID.4 – available today. #Voltswagen #ID4 pic.twitter.com/pKQKlZDCQ7

— Volkswagen (@VW) March 30, 2021

What’s the issue with the fake news release?

Now, AP News reports that as VW’s stock value rose by some five percent the same day as the press release went public, they could be in hot water. In a volatile market that has already seen automakers and tech companies’ values such as Tesla fluctuate wildly, the hoax by Volkswagen could pose troubling to US regulators.

Some have pointed out how it mimics the tweet that landed both Tesla and Elon Musk in deep trouble. We’ll remind you that Tesla’s CEO Elon Musk had tweeted he had the funding secured to take the company private. Not only did this drive up Tesla’s stock, but it also proved to be inaccurate, leading to both Musk and Tesla having to pay $20 million in penalties each.

It’s not the best look for the company, which is still seeking to repair its image and restore trust after the emissions scandal of 2015. However, if it’s press they wanted, VW has undoubtedly got far more out of it than they could have hoped for. But, as one USA Today journalist pointed out, the fueling of misinformation is a dangerous line to tow. We reached to the U.S. Securities and Exchange Commission (SEC), but it declined to comment on the matter.

Dear Volkswagen: You lied to me. You lied to AP, CNBC, Reuters and various trade pubs. This was not a joke. It was deception. In case you hadn’t noticed, we have a misinformation problem in this country. Now you’re part of it. Why should anyone trust you again? https://t.co/1rcKT7p0u5

— Nathan Bomey (@NathanBomey) March 30, 2021

Article Source and Credit carscoops.com https://www.carscoops.com/2021/03/voltswagen-hoax-may-land-vw-into-trouble-with-u-s-regulators-for-distorting-stock-prices/ Buy Tickets for every event – Sports, Concerts, Festivals and more buytickets.com

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