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Tesla reportedly dropped by NTSB from fatal Model X investigation [Updated]
Tesla has opted to step back from the ongoing NTSB investigation into the fatal Model X accident last month near Mountain View, CA.
According to Tesla, it has decided to withdraw from its party agreement with the NTSB because it might result in withholding information that affects public safety. In an emailed statement to Bloomberg, the Elon Musk-led electric car maker stated that it believes in transparency.
“Tesla withdrew from the party agreement with the NTSB because it requires that we not release information about Autopilot to the public, a requirement which we believe fundamentally affects public safety negatively. We believe in transparency, so an agreement that prevents public release of information for over a year is unacceptable,” Tesla stated.
Despite not being a formal part of the ongoing NTSB investigation, Tesla stated that it would continue to provide technical assistance to the agency as it continues its probe into the tragic accident.
Citing a person familiar with the matter, Bloomberg stated that the NTSB is actually removing Tesla from the investigation. Quite unlike the “very constructive conversation” reported by an NTSB spokesman last weekend between Tesla CEO Elon Musk and NTSB Chief Robert Sumwalt, the anonymous Bloomberg source stated that the talk involved Sumwalt informing Musk that his company was being taken off the investigation. The source further claimed that the conversation between Musk and the NTSB chief was “tense” due to the Tesla CEO’s reaction to the agency’s decision.
Tesla’s decision to release information related to the NTSB’s ongoing probe resulted in the agency stating that it was “unhappy” with the electric car maker. Responding to the NTSB, Musk stated on Twitter that Tesla will immediately release information that can directly affect public safety.
“Lot of respect for NTSB, but NHTSA regulates cars, not NTSB, which is an advisory body. Tesla releases critical crash data affecting public safety immediately & always will. To do otherwise would be unsafe,” Musk tweeted.
Updated: Tesla has issued the following response to a statement made by the NTSB.
“Last week, in a conversation with the NTSB, we were told that if we made additional statements before their 12-24 month investigative process is complete, we would no longer be a party to the investigation agreement. On Tuesday, we chose to withdraw from the agreement and issued a statement to correct misleading claims that had been made about Autopilot — claims which made it seem as though Autopilot creates safety problems when the opposite is true. In the US, there is one automotive fatality every 86 million miles across all vehicles. For Tesla, there is one fatality, including known pedestrian fatalities, every 320 million miles in vehicles equipped with Autopilot hardware. If you are driving a Tesla equipped with Autopilot hardware, you are 3.7 times less likely to be involved in a fatal accident and this continues to improve.
It’s been clear in our conversations with the NTSB that they’re more concerned with press headlines than actually promoting safety. Among other things, they repeatedly released partial bits of incomplete information to the media in violation of their own rules, at the same time that they were trying to prevent us from telling all the facts. We don’t believe this is right and we will be making an official complaint to Congress. We will also be issuing a Freedom Of Information Act request to understand the reasoning behind their focus on the safest cars in America while they ignore the cars that are the least safe. Perhaps there is a sound rationale for this, but we cannot imagine what that could possibly be.
Something the public may not be aware of is that the NTSB is not a regulatory body, it is an advisory body. The regulatory body for the automotive industry in the US is the National Highway Traffic Safety Administration (NHTSA) with whom we have a strong and positive relationship. After doing a comprehensive study, NHTSA found that even the early version of Tesla Autopilot resulted in 40% fewer crashes. Autopilot has improved substantially since then.
When tested by NHTSA, Model S and Model X each received five stars not only overall but in every sub-category. This was the only time an SUV had ever scored that well. Moreover, of all the cars that NHTSA has ever tested, Model S and Model X scored as the two cars with the lowest probability of injury. There is no company that cares more about safety and the evidence speaks for itself.”
Just recently, the wife of the ill-fated Model X driver has gone on local news agency ABC7 News to state that her husband had complained about Autopilot multiple times before the March 23 accident. According to Mike Fong, the Huang family’s lawyer, the collision would not have happened had Autopilot not been activated. Fong noted that he would not file a complaint against Tesla while the NTSB investigation is ongoing, though he did state that the carmaker’s responses so far have been to blame the Model X’s driver.
While Tesla could be facing a lawsuit from the Huang family over the fatal incident, Will Huang, the Model X driver’s brother, previously stated to ABC7 News that his brother could have survived the accident had his car collided with a working crash attenuator. During its initial update about the fatal collision, Tesla stated that the crash attenuator that the Model X smashed into had been left unrepaired, causing extensive damage to the vehicle.
“That (the crash attenuator) ultimately should’ve saved my brother’s life. We’ve seen videos of similar crash(es) with cushion, and the driver walked out of it unharmed,” Will said.
Later statements from CalTrans eventually revealed that the highway safety device had been damaged from a collision 11 days before the Model X accident. According to CalTrans, crash attenuators are usually repaired in 7 days or 5 business days, but storms in the area prevented any repair work.
Tesla has apparently revised the policy it previously had listed for Full Self-Driving transfers on the newest All-Wheel-Drive Cybertruck that the company had sold for a steal price of just $59,000 earlier this year.
After initially stating that customers who bought the pickup would be able to transfer FSD purchases, Tesla recently changed the language in those terms and conditions to reflect that this would no longer be the case.
Tesla launches new Cybertruck trim with more features than ever for a low price
The adjustment in terminology has caused a handful of orderers to cancel their reservations due to the loss of FSD transfer:
Just cancelled my 59k CT order today. My screenshot from that day of order (feb 20th) clearly shows that it would be eligible.
Terms were retroactively modified. Our 2020 Y and 2023 S are just fine for now. pic.twitter.com/D9PFnId1B4
— Ryan Scanlan 👥 (@Xenius) June 8, 2026
Tesla said orders for the new Cybertruck AWD must be placed by March 31, 2026, to qualify for the FSD transfer. The language in the document from earlier this year explicitly states that they “may qualify” for the transfer program, but the date of March 31 is explicitly mentioned.
Additionally, Tesla Delivery Advisors reached out to some orderers of the AWD Cybertruck, who were told there was “an update to the eligibility of the Full Self-Driving (Supervised) transfer.” Tesla stated they could:
- proceed without the transfer,
- upgrade to a Premium or Cyberbeast trim and request an FSD Transfer
- cancel the order and be refunded the $250 order fee.
Tesla turning around and changing these terms will undoubtedly result in a handful of cancellations on the part of those who have placed an order for this truck. They could pay $99 per month for an FSD subscription, which is now the only option available, but having purchased the suite outright on another vehicle and being told the transfer policy would be upheld, only to have it cancelled, is a tough pill to swallow.
These moves were also made by Tesla just before deliveries were set to begin on the Cybertruck AWD configuration. Reservation holders have started receiving VINs for their trucks, and Tesla is preparing to hand over the first units.
It’s a disappointing move from Tesla that will undoubtedly make some of its fans who have bought the truck frustrated.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
Tesla revises FSD transfer policy on new Cybertruck trim, causing cancellations
Tesla tipped its hand at where Robotaxi is heading next
