Tesla, Inc. shares are experiencing a decline following reports of a probe by the U.S. National Highway Traffic Safety Administration into 2.88 million Tesla vehicles. The investigation centers around concerns over Full Self-Driving traffic violations.
What To Know
- The National Highway Traffic Safety Administration (NHTSA) is opening an investigation into Tesla vehicles equipped with Full Self-Driving after receiving over 50 reports of traffic-safety violations and multiple crashes.
- The agency has stated that the system has “induced vehicle behavior that violated traffic safety laws,” including incidents of Teslas driving through red lights and traveling in the wrong direction during lane changes.
Investigation Details
The NHTSA is reviewing 58 reports of safety violations tied to FSD, including:
- 14 crashes
- 23 injuries
- 6 cases where Teslas continued through intersections against red lights, resulting in collisions, with 4 of these incidents leading to injuries.
Additionally, the agency plans to examine FSD’s behavior near railroad crossings, prompted by a report from a driver in Houston who claimed that FSD was “not recognizing traffic signals.”
Latest in a Series of Investigations
This new probe marks the latest in a series of investigations into Tesla’s advanced driver assistance features. A preliminary evaluation could potentially lead to a recall if regulators determine that the vehicles pose a safety risk.
Recent Developments
- Tesla issued a software update for FSD this week.
- CEO Elon Musk has stated that Tesla vehicles will feel like they are “sentient” by version 14.3.
TSLA Price Action
At the time of writing, Tesla shares are trading 2.14% lower at $429.52.
Related News
Other news in the market includes the climb of rare earth stocks as China adds restrictions.