What We’re Reading
Tesla Autopilot safety probe by federal vehicle regulators nears completion (CNBC, August 25, 2023)
According to recent reports by Reuters’ David Shepardson, NHTSA’s multiyear investigation into the safety of Tesla’s ADAS—now marketed in the U.S. as Autopilot, Full Self-Driving, and FSD Beta options—may finally be nearing a conclusion. NHTSA originally initiated this safety probe of Tesla in 2021, after a string of accidents involving stationary emergency vehicles.
As widely reported, Tesla’s current ADAS is not fully autonomous and drivers are cautioned to keep their hands on the wheel and be ready to take over driving operations at all times. Additionally, the automaker’s vehicles are equipped with driver-monitoring systems that utilize in-cabin cameras and sensors to detect adequate driver engagement. Notwithstanding these safeguards, critics have questioned whether Tesla’s ADAS is prone to misuse given its marketing and names, which arguably imply fully autonomous capabilities.
Although Tesla has previously conducted voluntary recalls and over-the-air updates, this past summer NHTSA requested the automaker provide more extensive data on the performance of its ADAS as part of the ongoing safety investigation. Now it appears that NHTSA may be ready to publicly disclose its findings in this regard.
Focus: Tesla braces for its first trial involving Autopilot fatality (Reuters, August 28, 2023)
Tesla counsel are no doubt deep in preparation for two upcoming trials in cases involving fatalities and other serious bodily injuries, which, if they proceed, will be the first such cases against Tesla to go to a jury.
The first trial in Molander v. Tesla is scheduled to begin in mid-September in California state court. In Molander, Plaintiffs claim that Tesla’s “Autopilot system caused owner Micah Lee’s Model 3 to suddenly veer off a highway east of Los Angeles at 65 miles per hour, strike a palm tree and burst into flames, all in the span of seconds.” The 2019 crash killed Lee, who was driving, and severely injured his two passengers, including an 8-year-old child. The second trial in Banner v. Tesla is set for October in Florida state court. Banner involves allegations related to a 2019 crash that occurred when “Stephen Banner’s Model 3 drove under the trailer of an 18-wheeler big rig truck that had pulled into the road, shearing off the Tesla's roof and killing Banner.” Tesla has denied liability and has vigorously defended in both cases, arguing that driver error caused the fatal crashes and that “Autopilot is safe when monitored by humans.” At the same time, discovery in at least the Banner case suggests that “Musk and engineers were aware of, and did not fix, shortcomings” in the technology.
Industry and legal experts are closely monitoring both cases, with everyone in apparent agreement that the outcomes will have significant precedential value. As two law professors quoted in this article note, a favorable outcome for Tesla could drive settlement in other cases, while “a big loss for Tesla—especially with a big damages award [could] dramatically shape the narrative going forward.”
EVs are running out of customers – and some dealers don’t want them anymore (Business Insider, August 23, 2023)
After years of back orders and limited supply, EV supply and demand may be starting to stabilize. In fact, some dealerships are reportedly telling automakers they don’t want any more deliveries until they can clear current backlogged inventory.
“We have turned away EV inventory,” said Scott Kunes, the chief operating officer of Kunes Auto and RV Group, which sells Detroit brands as well as Nissan and Mitsubishi in the Midwest. “We need to ensure that we have a good turn on it.”
Some see this as an early sign that the EV-adoption growth curve may be on the cusp of a major downturn, as enthusiastic early demand from wealthy electrification converts starts to wane. “It's not just that these vehicles are expensive—which they are. We're talking about a much more nuanced lifestyle change,” said Sam Fiorani, the vice president of global vehicle forecasting at AutoForecast Solutions. “It's hard for the average customer to make that leap while spending an extra $10,000,” Fiorani added.
If EV sales are actually plateauing, dealers may need to brace for more growing pains, as automakers may be forced to continue churning out models to appease investors, leaving dealers holding the bag. Savvy executives, however, may already be anticipating the downturn. “Dealers know in real time with real-time feedback what the market is doing,” said Karl Brauer, an automotive analyst for iSeeCars. “They have always acted as the first warning lights on the dash for the automotive industry.”