The National Highway Traffic Safety Administration (NHTSA) opened a special investigation into a fatal Texas crash involving a Tesla Model 3. Reports indicate the vehicle used an automated driving feature during the incident. This probe creates uncertainty for Tesla’s autonomous driving strategy and its planned robotaxi fleet.
Tesla (TSLA) shares fell over 5% during trading on June 24. A broader technology sector sell-off and a JPMorgan analyst lowering Q2 delivery estimates compounded the decline. The analyst cited uncertain electric vehicle demand as a primary concern.
The investigation increases the risk of potential vehicle recalls and heightened regulatory scrutiny. Federal oversight may also delay the rollout of Full Self-Driving (FSD) features.