What We’re Reading

• Factbox: Tesla’s Autopilot faces unprecedented scrutiny (Reuters, November 1, 2022)

  This report from Reuters concisely summarizes the major legal and regulatory hurdles that Tesla currently faces regarding its FSD and Autopilot systems.

  CRIMINAL CASE IN CALIFORNIA

  The trial of this case, which involves a manslaughter charge against a Model S driver who was involved in a fatal accident while using Autopilot, is currently scheduled to begin on November 15.  Although Tesla was not charged, the capabilities of its ADAS and its interaction with the driver is expected to be a central theme in the case. (This case also is highlighted in the Insurance Journal article to the left.)

  FLORIDA LAWSUIT

  The highly publicized lawsuit against Tesla by the estate of Jeremy Banner, who was killed when his Model 3 Tesla struck a tractor trailer while engaged in Autopilot, is finally set to go to trial in February.  This will be the first civil lawsuit against Tesla involving its ADAS systems that will actually go to a jury.

  MOUNTAIN VIEW ACCIDENT

  This is another civil lawsuit against Tesla involving a fatality. In the underlying collision, Apple engineer Walter Huang was killed when his Tesla Model X swerved and slammed into a concrete divider. The case is set to go to trial in March.

  It is anticipated that Tesla’s defense will center heavily on its claim that Mr. Huang’s hands were not detected on the wheel for 6 seconds prior to the collision, and that he did not take any action to avoid the accident. Like the Banner suit, this case should provide an interesting look into the driver/ADAS interaction and who bears ultimate responsibility when accidents occur in ADAS-enabled vehicles. 

  DEPARTMENT OF JUSTICE INVESTIGATION

  Although the investigation is ongoing, the Justice Department could potentially institute criminal charges against Tesla or individual executives due to Tesla’s deceptive marketing of its ADAS.

  CALIFORNIA INVESTIGATION

  In yet another investigation into Tesla’s practice of marketing its vehicles as autonomous, the California DMV could suspend Tesla's license to sell vehicles in that state and require the company to make restitution to drivers. California's DMV is also conducting a separate safety review that could force Tesla to seek regulatory permits to operate its vehicles in California.

  Both of these inquiries remain in the discovery stages and few substantive details have been publicly released.

  NHTSA INVESTIGATION

  In June, NHTSA upgraded its defect investigation into 830,000 Tesla vehicles with Autopilot, a required step before it could seek a recall. As part of the probe, NHTSA has also requested data from Tesla regarding its cabin camera and the role it plays in driver monitoring during ADAS usage.

• Tesla reluctantly gave Full Self-Driving Beta demo to DMV and critics (Electrek, November 2, 2022)

  Tesla recently demonstrated a beta version of its Full Self-Driving system at the Sacramento headquarters of the Department of Motor Vehicles. In addition to DMV officials, the demo was witnessed by a representative of the Highway Patrol, a deputy secretary with the state transportation agency, and three outside advisers for the DMV.

  The demo appears to have been an attempt by Tesla to address concerns raised by the DMV when it accused Tesla in August of misleading consumers about FSD and Autopilot, and its self-driving claims. Tesla also now faces federal probes regarding the marketing of its ADAS. 

  According to leaked emails, Tesla took issue with two of the consultants who attended the demo due to their prior public criticism of FSD. In the emails sent to the DMV, Tesla’s California lead for policy and business development wrote, “I question whether it is appropriate to include your consultants that have made negative public statements about Tesla. . . . We have yet to receive any assurance that their bias does not influence DMV’s treatment of Tesla.”

  Notwithstanding Tesla’s objection, the consultants were allowed to attend and the demo was completed.  We will continue to monitor reports of the details of the demo, which have not yet been publicly released.

• Auto industry reassess autonomous vehicles, creating uncertainty for city leaders (SmartCitiesDive, November 7, 2022)

  The consensus view on the future of autonomy seems to have shifted in recent weeks, with major industry players opining that truly reliable autonomous technology is still years away from meaningful deployment, particularly in congested urban environments. This shifting consensus presents a serious conundrum for city and state leaders who have been planning and funding infrastructure for years anticipating an eventuality that may not happen any time soon.

  While the industry reassesses its multibillion-dollar investment in AV-related technologies, The Autonomous Vehicle Industry Association (AVIA) astutely noted that AVs can still “improve public safety, enhance mobility for the elderly and disabled, reduce traffic congestion, improve environmental quality, advance transportation efficiency and spur growth in the U.S. economy.” Jeff Farrah, newly appointed executive director of AVIA, said, “The first thing that I want city leaders to know is that our belief is that AVs can be a tremendous solution for a lot of the issues that the cities are confronting.”

  Despite current concerns, die-hard AV visionaries still anticipate that major technological advances in the next five years will enable self-driving cars to live up to their promise.