Tesla’s Autopilot probe being carried out by the National Highway Traffic Safety Administration (NHTSA) has expanded following a Model 3 crash in Orlando, Florida, that occurred last weekend.
In mid-August, the NHTSA launched an investigation involving eleven instances of Tesla electric cars crashing into emergency vehicles. The vehicles were operating on Autopilot, according to the investigations, but there is some evidence that some vehicles involved in the eleven accidents were not being properly operated under Tesla’s Autopilot operational standards, which require drivers to remain in control of the vehicle. Two of the accidents resulted in arrests for driving under the influence of alcohol, while another driver was operating the car on a suspended license.
Nevertheless, the NHTSA has made it clear that it will investigate each of these instances to determine whether the Level 2 ADAS system was responsible for the accidents. All four currently available Tesla models are under investigation: Model 3s from 2017-2021, Model S vehicles from 2014-2021, Model X vehicles from 2015-2021, and Model Ys from 2019-2021.
The investigation is now expanding from eleven to twelve accidents after a motorist struck a Florida Highway Patrol vehicle during the early morning hours of Saturday, August 28th. The Highway Patrol officer was pulled over on the side of the road to assist a disabled vehicle, but his car was struck by a Model 3 operating on Autopilot. The driver stated the vehicle was utilizing Autopilot at the time of the accident.
The driver of the Model 3 and the occupant of the disabled vehicle were both reported as having minor injuries. The FHP officer was unharmed.
NHTSA launches Tesla Autopilot investigation over crashes with emergency vehicles
A new letter released this morning and obtained by Teslarati indicates that the Orlando accident is the most recent addition to the Autopilot investigation. An accident in San Diego that occurred on July 10th is the second-most recent occurrence.
The NHTSA writes in the letter to Tesla Field Quality Director Eddie Gates:
“This letter is to inform you that the Office of Defects Investigation (ODI) of the National Highway Traffic Safety Administration (NHTSA) has opened a Preliminary Evaluation (PE21-020) to investigate crashes involving first responder scenes and vehicles manufactured by Tesla, Inc. (Tesla) that were operating in either Autopilot or Traffic Aware Cruise Control leading up to the incident, and to request certain information.
This office is aware of twelve incidents where a Tesla vehicle operating in either Autopilot or Traffic Aware Cruise Control struck first responder vehicles / scenes, leading to injuries and vehicle damage. In each case, NHTSA has reviewed the incidents with Tesla. A list of the twelve incidents has been included for reference.”
The NHTSA is requesting significant information regarding each of the vehicles involved in the twelve incidents, including: Vehicle identification number (VIN); b. Model; c. Model Year; d. Subject component trade / trim name, part number and design version installed as original equipment; including: Software version; Firmware version; Hardware version; Date of manufacture; Date warranty coverage commenced; Date and mileage at which the “Full Self Driving” (FSD) option was enabled; The State in the United States where the vehicle was originally sold or leased (or delivered for sale or lease); Latest known vehicle mileage and commensurate date; Cumulative mileage covered with the subject system engaged; and Date and identities of the most recent software, firmware, and hardware updates.
Tesla is required to respond with the information by Friday, October 22nd, 2021, or it could have fines of up to nearly $115 million.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
