9:44 am, October 21, 2024
The USA’s automotive safety regulator has opened an enquiry into Tesla’s Full Self-Driving software (FSD) just days before Elon Musk’s company is set to announce its financial results and outline its future autonomy strategy.
The National Highway Traffic Safety Administration (NHTSA) probe into 2.4-million Tesla models fitted with the technology comes after four reported collisions, including two fatal accidents, and couldn’t come at a worse time for Musk, who this week is set to outline his company’s focus on self-driving technology and the Cybercab Robotaxi, as the company responds to increased competition and reduced demand across its passenger car business.
NHTSA’s preliminary evaluation is the first step ahead of a potential mandatory recall of the vehicles if it believes they pose ‘an unreasonable risk to safety’, which would be a major blow to Tesla’s Cybercab strategy.
The Robotaxi concept has no steering wheel or pedals and is operated by cameras and AI, but would not be able to be used on US streets without NHTSA approval.
NHTSA said it was opening the inquiry after four reports of crashes where FSD was engaged during reduced visibility – such as sun glare, fog, or thick dust. A pedestrian was killed in Rimrock, Arizona, in November 2023 after being struck by a Tesla Model Y, NHTSA said. In another incident in April 2024, a Tesla Model S was in FSD mode when it hit and killed a 28-year-old motorcyclist in Seattle.
The NHTSA investigation is looking at 2016-2024 Tesla Model S and X vehicles with the optional system, as well as 2017-2024 Model 3, 2020-2024 Model Y, and 2023-2024 Cybertrucks. Tesla says its FSD software in on-road vehicles requires active driver supervision at all times.
In December 2023, the company recalled more than two million US vehicles to install new safeguards in their Autopilot advanced driver-assistance system. The company also disclosed in October 2023 that the US Justice Department issued subpoenas related to its FSD and Autopilot systems.
The latest news comes as Tesla prepares to outline its third quarter financial results this week. It will say that it delivered 462,890 cars in the period, a 6.4% rise over the same quarter in 2023 but below Wall Street estimates.
The rise is partly due to a sales recovery in China, where Tesla has faced intense competition from local EV rivals.
Wall Street predicts that Tesla sales will land at $25.5bn (£19.59bn) in the third quarter, flat on the previous three months, and that net income will rise to $1.7bn (£1.3bn) from $1.5bn (£1.15bn.
But Tesla’s shares dropped by about eight per cent after the company revealed its Cybercab Robotaxi last week, as investors felt the company had failed to provide sufficient detail around its sales strategy and self-driving software.
The NHTSA investigation is sure to raise more questions from investors about whether the self-driving ride hailing service will ever hit the road.
‘Weather conditions can impact the camera’s ability to see things and I think the regulatory environment will certainly weigh in on this,’ said Jeff Schuster, vice president of analytics company GlobalData, in an interview with Reuters.
‘That could be one of the major roadblocks in what I would call a near-term launch of this technology and these products.’
As well as the Cybercab, Tesla last week revealed the multi-passenger Robovan, which could carry up to 20 people.
