Tesla's (TSLA) Autopilot To Be Evaluated By NHTSA Post Crash

Tesla Motors, Inc. (NASDAQ:TSLA) is facing a preliminary evaluation of the performance of its Autopilot system by the National Highway Traffic Safety Administration (NHTSA). This evaluation is being undertaken after a fatal crash of a Model S to detect whether the system was functioning properly or not.

Tesla informed that this is the first casualty which occurred in 130 million miles driven by vehicles. In the U.S., there is report of a casualty every 94 million miles driven by vehicles. Globally there is report of a fatality in every 60 million miles.

Tesla had informed the NHTSA about the incident immediately. The company said that the vehicle was driving on a divided highway and the Autopilot was in function when a tractor trailer came across the highway perpendicular to the Model S. The Autopilot as well as the driver did not notice the white side of the tractor trailer due to the sunny climate and hence brake was not applied. Thus, the Model S passed under the trailer, and its windshield was hit by the bottom of the trailer.

Tesla’s Autopilot is a new technology and is in public-beta phase. Moreover, the Autopilot feature requires the driver to keep hands on the wheels all the time to take over whenever needed.

Tesla is focusing on improving Autopilot which is yet not perfect. It requires the driver to be attentive while using the system. But Tesla claimed that when used properly, Autopilot reduces driver workload and enhances vehicle safety compared to manual driving.

Tesla currently carries a Zacks Rank #4 (Sell).

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Some better-ranked automobile stocks include Commercial Vehicle Group Inc. (NASDAQ:CVGI) , Spartan Motors Inc. (NASDAQ:SPAR) , and Visteon Corp. (NYSE:VC) , all sporting a Zacks Rank #1 (Strong Buy).

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