Tensions between President Donald Trump and Elon Musk continue to rise, with Trump nominating a known Tesla Inc. critic to lead the U.S. National Highway Traffic Safety Administration (NHTSA).
Background
Jonathan Morrison, Trump’s nominee to lead the NHTSA, has been a critic of the EV giant in the past. During his time at the regulator, Morrison filed a cease-and-desist letter to Tesla following the NHTSA awarding the Tesla Model 3 a 5-star crash test rating. Tesla had claimed that the Model 3 achieved the lowest probability of injury among all vehicles tested by the regulator.
Upcoming Confirmation Hearing
Morrison is expected to appear before the Senate in the coming weeks for his confirmation hearing and could step into the role after his confirmation passes the Senate.
Escalating Tensions
The move comes as tensions between Trump and Musk over the Big, Beautiful Bill have escalated, with Musk announcing his decision to found a political party, which Trump has dubbed a “train wreck.” Tesla has also been under the scrutiny of the NHTSA, with the company’s FSD technology recently reviewed by the agency for its efficiency in different weather conditions before the Robotaxi launch.
NHTSA Scrutiny
The agency was also reviewing Tesla’s Robotaxi for possible traffic violations during the launch event in Austin. Musk’s actions have also put pressure on Tesla, with the company being under fire from experts like Ross Gerber, who believes Musk’s “America Party” is the “worst news” for Tesla.
Investor Concerns
Over 27 major investors have written a letter to the EV giant’s board to set up the company’s annual shareholder meeting, which Tesla has scheduled for November 6th this year.
Conclusion
The nomination of Jonathan Morrison as NHTSA chief has sparked concerns among Tesla investors and experts, amid escalating tensions between Trump and Musk. As the EV giant faces scrutiny from the NHTSA, it remains to be seen how the company will navigate these challenges in the coming months.
Related News
- Elon Musk Says Tesla Will Expand Robotaxi Services To San Francisco Bay Area ‘In A Month Or Two’
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Stock Insights
Tesla offers poor Momentum and Value, while scoring well on the Growth metric and offering satisfactory Quality.
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