Tesla faces federal scrutiny for delays in reporting crashes

The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into Tesla's reporting practices regarding crashes involving its driver assistance technology. These inquiries were triggered by concerns that Tesla consistently failed to comply with regulations mandating timely notification of crash incidents. Specifically, the regulations require manufacturers to report accidents within five days of being notified of the incident. However, the agency found that many crash reports from Tesla were submitted several months after the actual events, raising questions about the company's adherence to safety standards. This investigation is particularly significant because it coincides with Tesla's ambitious plans to expand its self-driving technology, which aims to deploy autonomous vehicles across the U.S. in the coming years. The timing is critical as the company recently began a self-driving taxi service in Austin, Texas. The safety agency is particularly focused on understanding why the reports were delayed, whether crucial information was included in these reports, and if there are additional crashes that remain unreported. Tesla has acknowledged these delays were due to issues with data collection, which they assert have since been rectified. Besides the current investigation, NHTSA is also conducting an ongoing inquiry into potential issues with Tesla's self-driving technology, especially in low visibility conditions, which has been associated with several accidents. Notably, one of these incidents resulted in a fatality, provoking heightened scrutiny and concern over the viability of Tesla’s autonomous systems. The implications of this dual investigation could pose hurdles for Tesla as it seeks to capitalize on the lucrative autonomous vehicle market. Additionally, reports indicate that Tesla was ordered to pay $329 million in damages for a fatal crash in 2019 involving an Autopilot-equipped vehicle that crashed into a parked car. This legal judgment further complicates Tesla’s public relations, especially as the company stakes its future on autonomous vehicle technology. The automobile industry is watching closely to see how these investigations and legal troubles will influence Tesla’s strategy and whether it can maintain investor confidence despite facing falling sales and profits amid political controversies surrounding CEO Elon Musk.