Tesla is facing increasing scrutiny over a sharp rise in fatal accident rates associated with its vehicles, particularly the Model Y and Model S. A recent study by iSeeCars revealed that the Model Y has a fatal accident rate of 10.6 per billion vehicle miles, nearly four times the average rate of 2.8. The Model S follows with a rate of 5.8 per billion miles. This alarming trend has raised concerns among regulators and safety advocates, especially following a tragic crash on November 15, 2024, in Pennsylvania that resulted in two fatalities. [27ffcbfd]
In light of these incidents, the National Highway Traffic Safety Administration (NHTSA) has expanded its investigation into Tesla's Full Self-Driving (FSD) and Autopilot features. The investigation is particularly focused on the software's performance in low-visibility conditions, as highlighted by a previous fatal crash involving a pedestrian in Rimrock, Arizona, where the driver reported being blinded by sun glare. This inquiry encompasses approximately 2.4 million Tesla vehicles manufactured between 2016 and 2024. [1fefce35]
Karl Brauer, an automotive analyst, emphasized that while new cars are generally safer, the rise in distracted driving poses significant risks. He noted that driver behavior is a critical factor in vehicle safety, suggesting that education campaigns are necessary to address risky driving habits. This sentiment is echoed by the NHTSA's findings, which indicate that the technology's reliability is under question, especially as it relates to pedestrian safety. [27ffcbfd]
Tesla's recent rollout of its 'Cybercab' service and ambitious plans for 'unsupervised' FSD capabilities have also contributed to investor concerns, leading to a notable drop in the company's stock. Following the announcement of the Cybercab on October 12, 2024, Tesla's stock fell by 8%, and UBS downgraded the stock from 'Neutral' to 'Sell', citing deteriorating expectations for its core automotive business. [1fefce35]
As investigations continue, the automotive industry is closely monitoring Tesla's response to these safety concerns, particularly as other brands, such as Kia, have also reported high fatal accident rates. The emphasis on driver behavior and the need for educational initiatives to promote safer driving practices remain critical components of the ongoing discussion surrounding automotive safety. [27ffcbfd]