Tesla Stock Slips as NHTSA Launches New FSD Probe
Federal regulators are investigating Tesla's Full Self-Driving system after dozens of crashes, raising new questions about the company's autonomous driving technology.
Shares of Tesla (TSLA) fell this week after the National Highway Traffic Safety Administration (NHTSA) announced a new investigation into the company's Full Self-Driving (FSD) system. The probe, which covers an estimated 2.9 million vehicles, was launched after the agency received reports of 58 incidents, including 14 crashes and 23 injuries, allegedly linked to the FSD system's performance.
According to the NHTSA, the investigation will examine incidents where Tesla vehicles equipped with FSD were reported to have violated traffic laws. These include running red lights, driving into oncoming traffic, and failing to stop at stop signs. The agency's investigation will also assess the performance of Tesla's FSD system near railroad crossings, a point of concern that has been raised by lawmakers.
This is not the first time that Tesla's autonomous driving technology has come under scrutiny. The company is already facing a criminal probe from the Department of Justice and a civil investigation from the Securities and Exchange Commission over its marketing of its FSD capabilities. This latest investigation from the NHTSA adds to the mounting pressure on Tesla to address the safety and reliability of its autonomous driving systems. In response to the investigation, Tesla has maintained that its FSD system requires active driver supervision and does not make the vehicle autonomous. The company has not yet issued a formal statement on the new NHTSA probe.
The investigation comes at a critical time for Tesla, which has been banking on its FSD technology to be a major driver of future growth. The company has been rolling out new versions of its FSD software, but this latest probe could delay its efforts to achieve full autonomy. The if it determines that the FSD system poses an unreasonable risk to safety. Such a move would be a major setback for Tesla and could have a significant impact on its stock price.
Following the announcement of the investigation, as investors reacted to the news. While the long-term implications of the investigation remain to be seen, it is clear that regulators are taking a closer look at the safety of autonomous driving technology. As the industry continues to develop, it is likely that we will see more scrutiny from regulators and lawmakers to ensure that these systems are safe for public roads.