The National Highway Traffic Safety Administration (NHTSA) is examining a crash involving Tesla Motors, Inc.’s (NASDAQ:TSLA) Model X that occurred on Jul 1 in Pennsylvania. The agency is keen to determine whether the vehicle’s Autopilot system was operational when the crash took place. This is the second time that the automaker will be facing an investigation by the NHTSA for its Autopilot function.
The Autopilot function is a semi-autonomous technology which facilitates driving in lanes. Tesla claims that when used properly, Autopilot reduces driver workload and enhances vehicle safety compared to manual driving.
The company confirmed that it had received an alert from the concerned vehicle about the airbags being deployed. However, there were no details about whether the Autopilot system was on or not. Tesla further stated that it had made many unsuccessful attempts to contact the vehicle’s owner.
The NHTSA has been gathering information from state police, Tesla and the driver for this investigation. The state police confirmed that the Model X hit a turnpike guard rail and then turned across several traffic lanes into the median. It finally landed on its roof in the middle of the roadway. The driver and a passenger were injured in this crash.
The previous preliminary evaluation by the NHTSA was started following a fatal crash involving a Model S. The evaluation was aimed at detecting whether the system was functioning properly at the time of the accident.
Tesla’s Autopilot is a new technology that is in a public-beta phase. Moreover, the Autopilot feature requires the driver to keep his hands on the wheels all the time to take over whenever required. Tesla is focusing on improving the feature as it is not perfect as yet and requires the driver to be attentive during usage.
The two recent crashes have raised questions about the safety of self-driving technology.
Tesla currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Some better-ranked automobile stocks include Commercial Vehicle Group Inc. (NASDAQ:CVGI) , Spartan Motors Inc. (NASDAQ:SPAR) and Unique Fabricating, Inc. (NYSE:UFAB) , all sporting a Zacks Rank #1 (Strong Buy).
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