Tesla, the electric carmaker known for its Autopilot driver-assistance system, is facing renewed scrutiny from US regulators. The National Highway Traffic Safety Administration (NHTSA) is investigating whether Tesla’s December 2023 recall, targeting the Autopilot system’s driver monitoring, went far enough to ensure driver attentiveness. This news has the potential to impact Tesla’s stock price.
The Recall in Question
The December 2023 recall involved over 2 million Tesla vehicles. The issue at hand was the Autopilot system’s reliance on detecting torque on the steering wheel to determine driver engagement. Experts argued this method was easily fooled by placing weights on the wheel, allowing inattentive drivers to misuse the system.
Did the Fix Go Far Enough?
Tesla addressed the NHTSA’s concerns with a software update that increased in-car warnings and alerts for drivers to keep their hands on the wheel. However, the NHTSA questions the effectiveness of this fix. Reports of crashes continue to emerge despite the update, and some features of the update reportedly require driver opt-in or allow for easy reversal. The NHTSA is also investigating why additional software updates addressing driver monitoring concerns weren’t included in the official recall.
Potential Impact on Tesla
This renewed investigation by the NHTSA casts a shadow over Tesla’s Autopilot system, a key selling point for many Tesla vehicles. If the NHTSA finds the December recall inadequate, Tesla could be forced to implement a more comprehensive fix, potentially impacting production timelines and costs. Negative publicity surrounding safety concerns could also dampen investor confidence and lead to a drop in Tesla’s stock price.
Looking Ahead
The NHTSA’s investigation is ongoing, and its conclusions could significantly impact Tesla.
Investors should closely monitor developments as they unfold. In the meantime, the spotlight remains on Tesla, urging it to demonstrate its commitment to driver safety with Autopilot.
