Tesla Self-Driving System Will Be Investigated by Safety Agency
Published On Oct 18, 2024, 9:46 AM
The National Highway Transportation Safety Administration (NHTSA) is investigating Tesla's full self-driving system following incidents, including one fatal collision involving a pedestrian. The inquiry focuses on whether the system has adequate safeguards for drivers to regain control in challenging situations. This scrutiny coincides with slowing sales for Tesla, whose future growth depends heavily on its autonomous technology. Critics have raised concerns about the effectiveness of Tesla's camera-based system in poor visibility conditions compared to other companies' use of additional radar or laser technologies. The investigation affects around 2.4 million Tesla vehicles across various models.
Stock Forecasts
TSLA
Negative
Given the ongoing regulatory scrutiny and potential reputational damage from safety investigations, Tesla's stock may face pressure in the short term. Sales may be impacted if consumer confidence dwindles due to safety concerns, especially as the company is heavily reliant on self-driving technology for future growth.
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