Tesla Faces Federal Probe Over Delayed Accident Reporting

Tesla, the electric vehicle manufacturer, is currently under federal investigation by the National Highway Traffic Safety Administration (NHTSA) for failing to report traffic accidents as required. The NHTSA discovered that Tesla had submitted accident reports that were dated months or even years after the actual incidents occurred. The NHTSA's Defects Investigation Office found multiple accident reports submitted by Tesla, indicating that the accidents had occurred much earlier than the dates reported to the agency.

The NHTSA stated that the delay in reporting could be due to issues with Tesla's data collection, which the company claims have now been resolved. U.S. automakers are required to report accidents involving their vehicles' partial or fully autonomous driving systems within five days of becoming aware of the incident. The NHTSA will conduct an "audit inquiry" to verify whether Tesla has complied with reporting requirements and to assess the potential causes and extent of the reporting delays, as well as the measures Tesla has taken to address these issues.

The NHTSA will also investigate whether Tesla has omitted any previous relevant collision accidents and whether the reports submitted to the safety regulatory agency contain all necessary and available data. Tesla's vehicles sold in the U.S. are equipped with the standard Autopilot autonomous driving system or the advanced "Full Self-Driving (FSD)" assist feature. Both systems require the driver to remain at the wheel at all times, ready to take control or brake as needed.

This investigation by the NHTSA comes at a time when Tesla's CEO is attempting to convince investors that the company can lead the global autonomous driving market and that its autonomous driving system is safe enough to operate a fleet of autonomous taxis on U.S. public roads. In June, Tesla launched a human-driven autonomous taxi service in Austin, Texas, and operates another human-driven ride-hailing service in the San Francisco Bay Area, California. Passengers can book rides through Tesla's autonomous taxi app.

Tesla has not yet launched an unmanned ride-hailing service, so it cannot yet be directly compared to other autonomous driving competitors. The company is currently facing declining sales and profits, partly due to consumer backlash against the CEO's political statements, support for Trump's re-election, and leadership of the Department of Government Efficiency to reduce federal spending and personnel. Despite this, many analysts and shareholders remain optimistic about the CEO's vision.

The NHTSA's investigation into Tesla's reporting practices highlights the regulatory scrutiny that autonomous driving companies face. The agency's findings could have significant implications for Tesla's operations and its ability to expand its autonomous driving services. The company's response to the investigation and its efforts to address any identified issues will be closely watched by regulators, investors, and the public.