NHTSA Opens Safety Probe Into Fatal Tesla California Crash

The federal transport safety agency has opened a new probe into a Tesla Inc (NASDAQ: TSLA) vehicle crash that took place near Fontana, California on May 5.

What Happened: The National Highway Traffic Safety Agency (NHTSA) is going to begin the probe amid growing safety concerns for the Palo Alto-based automaker’s driver assistance systems, as first reported by Reuters.

A Tesla driver died after the vehicle crashed into an overturned truck on a highway near Fontana and injured the truck driver and a motorist who had stopped to help him, the California Highway Patrol said in a report.

It isn’t immediately clear if the Tesla vehicle involved was operating on Autopilot.

The NHTSA has in recent years formed Special Crash Investigation (SCI) teams to look into Tesla crashes related to the vehicle’s Autopilot system.

The agency has previously said it had opened 28 special investigations into Tesla crashes, with 24 pending. 

Why It Matters: Tesla’s recent crashes have sparked safety concerns. The Elon Musk-led company’s vehicle safety report for the first quarter of 2021 shows that the average distance per accident while driving on Autopilot has actually declined year-over-year.

However, Musk has claimed that Tesla with Autopilot engaged is approaching a 10 times lower chance of accident than the average car.

Price Action: Tesla shares closed 4.42% lower at $589.89 on Wednesday and were further down 1.25% in extended hours’ trading.

See Also: NTSB Report Shows Autopilot Was Most Likely Not Involved In Fatal Tesla Crash

© 2021 Benzinga does not provide investment advice. All rights reserved.

Source: NHTSA Opens Safety Probe Into Fatal Tesla California Crash

What do you think?

Why Cramer Sees Cathie Wood’s Top Tech Picks Heading Further Lower

Why Aave Is Surging In Defiance As Bitcoin, Ethereum, Dogecoin Slump On String Of Bearish News