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The National Highway Traffic Safety Administration (NHTSA) has initiated a new investigation into Tesla Inc. (NASDAQ:TSLA)’s handling of a December recall that affected 2 million vehicles that are equipped with the Autopilot software.
The recall involves all Tesla models, including Model Y, X, S, 3, and Cybertruck, and was intended to enact additional safeguards on the Autopilot system following a series of concerning crashes.
Yet with the NHTSA receiving reports of 20 crashes involving the vehicles post-update, the effectiveness of these measures is now under review, Reuters reported Friday.
The new investigation adds to the regulatory scrutiny of Autopilot at a time when CEO Elon Musk is pushing for full self- driving, as Tesla is offering a month of free trials and plans to unveil its Robotaxi on Aug. 8.
The latest NHTSA report highlights that despite the recall, new incidents involving Autopilot have surfaced, including several crashes.
The regulator’s Office of Defects Investigation has noted these occurrences and has performed preliminary tests on vehicles that received the updated software.
The ongoing safety evaluation highlights a significant disconnect between user expectations of Autopilot's capabilities and its actual functionality, according to the regulatory agency. This “critical safety gap” has reportedly led to misuse by drivers, resulting in avoidable accidents.
The agency criticized Tesla for using the term “Autopilot,” suggesting it “may lead drivers to believe that the automation has greater capabilities than it does and invite drivers to overly trust the automation.”
NHTSA’s findings suggest the updated Autopilot software still allows users to revert to previous settings, potentially undermining safety enhancements.
Tesla did not respond to a request for comment from Reuters, the news agency reported.
In its report, the NHTSA said Tesla’s approach to Autopilot functionality is markedly different from other auto manufacturers.
NHTSA has also raised concerns regarding the completeness of Tesla’s crash data reporting.
The agency pointed out that Tesla's data collection primarily captures incidents where airbags are deployed, representing a fraction of all Autopilot-related crashes.
This creates a substantial gap in understanding the full extent of issues associated with Autopilot use, the agency said.
This renewed probe by NHTSA is part of a series of investigations by various government agencies into Tesla’s Autopilot.
The Justice Department and the Securities and Exchange Commission are also examining claims that Tesla may have misled consumers and investors about the capabilities of Autopilot, potentially overstating its effectiveness.
Market Reactions
Tesla shares dropped by 1.7% on Friday, yet they have climbed more than 13.7% over the week, representing the strongest weekly gain for the stock in almost a year.
Photo courtesy of Tesla.
Posted In: TSLA
