Tesla (TSLA) is under fresh regulatory scrutiny. The National Highway Traffic Safety Administration (NHTSA) has launched a probe into the EV giant’s delayed reporting of crashes involving its Autopilot and full self-driving (FSD) systems.
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Under federal rules, automakers must report crashes involving advanced driver assistance systems (ADAS) within five days of learning about them. Tesla, which typically receives crash data within minutes via automated alerts, has reportedly submitted incident reports months after the actual events.
NHTSA cited numerous cases where Tesla failed to meet the required timeline, raising concerns about transparency and compliance.
The “audit query” will determine the reasons for these reporting delays, confirm whether the provided information is complete and accurate, and whether Tesla has taken any corrective actions.
Importantly, Tesla attributed the delays to a data collection error, claiming the issue has since been resolved.
Ongoing Scrutiny of Tesla’s Autonomous Technology
This latest investigation adds to a series of ongoing probes by the safety agency into Tesla’s technology. Since October, NHTSA has been looking into crashes involving Tesla’s FSD system in low-visibility conditions. That probe covers 2.4 million vehicles and follows four reported crashes, one of which was fatal in 2023.
Further, NHTSA is investigating 2.6 million Tesla vehicles in a separate case, started in January. This probe looks into crashes tied to a feature that allows remote vehicle movement.
These probes come at a critical time for the company, which recently launched a robotaxi service in Austin, Texas, and plans to roll out autonomous features to millions of vehicles via software updates.
Thus, the outcome of this investigation could impact Tesla’s ambitious push into autonomous driving.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 14 Buys, 15 Holds, and eight Sells assigned in the last three months. At $307.23, the average Tesla price target implies a 4.34% upside potential. The stock has declined 2% over the past six months.
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