The NHTSA National Highway Traffic Safety Administration is investigating Tesla’s Advanced Vehicle Driver Assistance System (ADAS) to assess the viability of self-propelled technology. The investigation became necessary after it was reported that Tesla cars were frequently involved in a series of accidents. The research is focused on Tesla Models Y, X, S, and 3, cars released from 2014 to 2021. NHTSA will investigate accidents after January 2018.
The resumption of yesterday’s NHTSA investigation reduced Tesla’s price by more than 5% to $ 681. Tesla shares, which were still up 7%, were at $ 686.
An investigation by the NHTSA says that since 2018, there have been 11 incidents involving Tesla cars, 17 people injured, and one killed. According to the study, most of the autopilot incidents took place during the night. NHTSA intends to investigate in detail the circumstances surrounding the disasters.
Tesla’s autopilot feature has become the subject of criticism on social media because of its capabilities. According to the company guidelines, the driver must have his hands active during autopilot mode. Newscasts even describe cases where drivers do not follow these instructions and completely cut off communication with the car.
As for other automakers, they have also introduced analog functionality in their cars. For example, the General Motors Company (GM) cruise feature is available on Cadillac cars. It allows you to have your hands free; however, at the same time, it is equipped with facial recognition technology to measure driver engagement while driving. In driver negligence, the function illuminates the hazard indicator and will eventually stop the vehicle.
Tesla cars stop after 60 seconds if the driver ignores the autopilot warning messages and ignores them.
Tesla said the ultimate goal of its vehicles is complete self-driving (FSD). Currently, the feature is in beta development.
According to Wedbush analyst Dan Ives, now Tesla and Musk have to navigate to ensure they are going well. As for supplies, this is a temporary uncertainty. The worst-case scenario for Tesla is to investigate a software defect, which could lower the stock price of his cars.
In previous studies, Tesla was right. For example, according to a report published in 2017 on the Florida disaster, safety standards were not violated in Tesla cars, and the issue no longer needed further investigation.
This investigation into Tesla’s move may prove to be a hindrance. The company is expanding worldwide and is increasing production, especially in the US. Also, Tesla has quite a few competitors in the electric car category. The company also faced safety problems in China and was forced to withdraw 300 vehicles. Given the factors predicted by the Wall Street Journal, investors should refrain from making Tesla-related investments at this stage.
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