Tesla cruises higher even as the NHTSA pushes harder on Autopilot safety
Sjoerd van der Wal
Tesla (NASDAQ:TSLA) received a special order from the National Highway Traffic Safety Administration as part of a Preliminary Evaluation to assess the performance of the Autopilot system installed on Tesla vehicles. The development is a continuation of an increase in scrutiny from federal regulators over the electric vehicle maker's driver-assistance system known as Autopilot.
The letter stated that the NHTSA became aware that Tesla has introduced an Autopilot configuration that allows drivers using Autopilot to operate their vehicles for extended periods without Autopilot prompting the driver to apply torque to the steering wheel. The agency said that it is concerned that the feature was introduced to consumer vehicles, and that with the existence of the feature now known to the public, more drivers may attempt to activate it.
"The resulting relaxation of controls designed to ensure that the driver remain engaged in the dynamic driving task could lead to greater driver inattention and failure of the driver to properly supervise Autopilot," warned NHTSA.
Tesla (TSLA) risks a fine of $26,315 per day if it does not comply with the special order.
The development does not appear to be impacting trading on the stock on Tuesday, with TSLA showing a 7.08% gain as of 3:15 p.m. Of note, the EV stock is at its highest level in three weeks. Some of the recent positive vibes on TSLA are due to the view the company's victory in the electric vehicle battery standard battle will pay off in the long term. Last week, Wedbush Securities forecast Tesla's Supercharger business would grow to be a $20B revenue monster.

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