The NHTSA's investigation follows a tragic incident in Katy, Texas, where a Tesla Model 3 crashed into a home, resulting in the death of 76-year-old Martha Avila. The driver, Michael Butler, reported using Tesla's partially automated driving systems at the time of the crash.
This incident adds to a growing list of over three dozen special crash investigations into Tesla's advanced driver assistance systems since 2016. The scrutiny comes after a California court found Tesla guilty of misleading advertising regarding its Autopilot feature, which has since been rebranded.
The ongoing investigations and incidents, including a similar crash in Clairemont, California, where six people were injured, raise significant safety concerns. Despite these challenges, Tesla's stock closed slightly higher at $405.05, indicating that investor confidence may still be holding, at least in the short term.
However, the long-term implications of these investigations could affect Tesla's ambitions in the autonomous vehicle market, as CEO Elon Musk aims to reassure investors of the company's potential to lead in this space