Tesla (TSLA) Under NHTSA Scrutiny for Robotaxi Safety Concerns

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May 13, 2025
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The National Highway Traffic Safety Administration (NHTSA) is requesting further details from Tesla (TSLA, Financial) about its robotaxi service, which is set for launch in Austin, Texas. The focus is on assessing Tesla's Full Self-Driving (FSD) technology, particularly in adverse weather conditions. NHTSA seeks to understand how Tesla ensures the robotaxi operates safely in low visibility scenarios, such as glare, fog, or snow.

NHTSA expects Tesla to clarify the number of vehicles to be deployed as robotaxis and when these vehicles can be operated by non-Tesla drivers. The agency also inquires whether Tesla will implement real-time monitoring during operations and requests details about the sensor configurations and cameras used in the system.

Despite the request for information, Tesla has not responded to the investigation. NHTSA's interest is heightened by a review of 2.4 million Tesla vehicles equipped with FSD, linked to four incidents, including a fatal crash. In December 2023, NHTSA recalled approximately 2 million Tesla vehicles to enhance their driver assist systems, questioning if it effectively addresses inattentive driving issues.

This situation highlights the potential risks of Tesla's FSD technology in challenging weather and the regulatory challenges it faces as autonomous technology evolves.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.