Tesla Under Investigation: Concerns Rise Over Self-Driving Feature Promoted by Musk After Serious Crashes

NEW YORK (AP) — The National Highway Traffic Safety Administration (NHTSA) is investigating Tesla’s self-driving feature after numerous reports of cars running red lights and driving on the incorrect side of the road. These incidents have led to crashes, injuries, and even fires.

The NHTSA is looking into 58 cases involving Tesla’s Full Self-Driving (FSD) mode. This inquiry comes amid ongoing scrutiny of Tesla’s technology, threatening Elon Musk’s vision of a fully driverless future via software updates for millions of cars on the road.

Following the announcement, Tesla’s stock took a hit, dropping 1.1% to $433.75.

“The real question is, ‘Does the software function properly?’” asked Seth Goldstein, an analyst at Morningstar who has a “sell” rating on Tesla. Ross Gerber, a fund manager and long-time Tesla advocate, noted, “It feels like the world is a giant testing ground for Elon’s self-driving dream, and it’s not working.”

This investigation looks at 2.9 million vehicles that feature FSD. Critics argue that the term is misleading, as it makes drivers too complacent. Tesla claims it repeatedly informs drivers that they must remain vigilant and ready to take control.

Many drivers involved in accidents reported that their vehicles provided no warning before unexpected actions. This is not the first investigation by the NHTSA; they previously looked into other driver-assistance features in 2.4 million Teslas after crashes due to poor visibility, including one tragic accident resulting in a pedestrian’s death.

In August, a jury found Tesla partially liable for a fatal crash in 2019 tied to its Autopilot technology. The company faces a potential payout of over $240 million, which it plans to appeal.

According to Gerber, Tesla should reconsider its terminology. He believes the company needs additional hardware like radar sensors to improve safety. “Tesla must own up to its software flaws and either enhance the hardware or admit that it doesn’t work as promised,” he stated.

Tesla’s FSD system is classified as Level 2 driver-assistance software, which requires drivers to stay alert. The company recently released a new version of this feature and is testing an advanced version that aims to eliminate the need for driver intervention—a promise Musk has made for years.

Tesla is under increasing pressure, not just from regulatory investigations but also due to declining sales as it faces stiff competition from rivals like BYD, which offers high-quality electric vehicles at lower prices. Customers upset with Musk’s political views are also boycotting the brand.

In response to these challenges, Musk announced plans to launch two new less expensive versions of existing models, including the popular Model Y. However, this move did not impress investors, and Tesla’s stock dipped another 4.5%.

As Tesla continues its journey toward self-driving technology, it must confront not only growth issues and market competition but also the pressing concerns about the safety of its cars.

For further developments or specific data on Tesla investigations, visit the NHTSA for more information.

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