Quiver Quantitative - Tesla (NASDAQ:TSLA) is conducting a major recall, its largest ever, affecting over 2 million vehicles in the U.S. to install new safeguards in its Autopilot advanced driver-assistance system. This action comes after the National Highway Traffic Safety Administration (NHTSA) raised safety concerns, particularly about the system's potential for 'foreseeable misuse' by drivers. The recall, which seems to encompass nearly all Tesla vehicles on U.S. roads, aims to address issues where the Autopilot software might not sufficiently prevent driver misuse, increasing crash risks. Tesla, led by CEO Elon Musk, plans to roll out an over-the-air software update to enhance existing controls and alerts on affected vehicles.
This recall follows a two-year investigation by the NHTSA into Tesla's vehicles, scrutinizing whether they adequately ensure driver attention while Autopilot is engaged. Ann Carlson, Acting NHTSA Administrator, emphasized the urgency of addressing these concerns, citing fatal crashes involving Autopilot use. The recall also extends to Canada, where Transport Canada announced Tesla would recall 193,000 vehicles. However, it remains unclear if similar actions will be required in China.
Despite agreeing to the recall, Tesla expressed disagreement with NHTSA's analysis but committed to deploying the software update to encourage driver responsibility when using Autosteer. The update will include enhanced visual alerts and simplified engagement processes for Autosteer. U.S. Senators Ed Markey and Richard Blumenthal have commended the recall as a necessary step for safety but stressed it was long overdue. NHTSA will continue its investigation into Autopilot as it monitors Tesla's implementation of the remedies.
Legal implications of the recall are significant, with potential impacts on ongoing lawsuits against Tesla alleging Autopilot defects. The recall's acknowledgment of the system's limitations may influence legal proceedings, although plaintiffs will still need to prove the defects directly caused their accidents. This recall is part of Tesla's broader challenge of ensuring the safety and reliability of its advanced driver systems. The company had faced earlier investigations and recalls related to its Full Self-Driving (FSD) and Autopilot systems, underscoring the complexities and responsibilities of innovating in automotive technology.
This article was originally published on Quiver Quantitative