The NTSB is looking into a recent Tesla crash that killed a man, although no word as yet whether to company’s Autopilot was in use.
SAN FRANCISCO — Tesla shares dropped 8% Tuesday as federal investigators announced they would be looking into a deadly California crash and concerns about the company’s production of Model 3 cars knocked its credit rating.
The National Transportation Safety Board tweeted that two investigators were conducting field research into the March 23 accident, in which a Model X SUV struck a highway median near Mountain View, Calif. and flipped into oncoming lanes, where it was struck by two vehicles.
NTSB officials said it remained «unclear if automated control system was active at time of crash,» a reference to Tesla’s Autopilot system.
Autopilot provides driver assist features such as keeping the car in a lane and even changing lanes on its own.
In contrast to self-driving car technology, the system requires driver oversight, though Tesla and CEO Elon Musk came under fire two years ago for emphasizing the autonomous aspect, which encouraged some Tesla owners to video themselves operating Teslas hands free.
Tesla said in a statement that the company has been «deeply saddened by this accident, and we have offered our full cooperation to the authorities as we work to establish the facts of the incident.”
A Tesla driver was killed in a Florida accident in 2016 when his vehicle, which was in Autopilot mode, failed to detect a truck cutting across his path. The NTSB also investigated that accident, and concluded that the driver should have been monitoring the car’s progress as the system indicates.
The NTSB also is at work investigating another deadly accident involving a cutting-edge auto-tech company.
Last week, an Uber self-driving Volvo driving in autonomous mode in Tempe, Ariz., killed a woman after the car’s sensors failed to detect the pedestrian walking outside of a crosswalk. The car’s safety driver also appeared to be distracted during the incident.
Uber immediately suspended its testing in a variety of states, but on Monday Arizona governor Doug Ducey sent a letter to Uber CEO Dara Khosrowshahi halting the company’s tests there indefinitely.
Tesla stock has long been a darling of investors despite the fact that the company has had issues with the delivery of its pricey and popular sedans, the Model S and Model X. Scrutiny is growing as deliveries of the company’s critical Model 3 sedan, seen as an entry-level car that is meant to turbocharge the electric vehicle market, have not been impressive.
On Tuesday, Moody’s Investors Service downgraded Tesla’s credit rating, citing its output of the Model 3 and financial constraints.
And hedge fund manager John Thompson of Vilas Capital Management told MarketWatch that unless Elon Musk “pulls a rabbit out of his hat,” Tesla will be bankrupt within four months.
Musk has vowed to produce as many as half a million cars a year, a five-fold increase over current levels. But so far Tesla is struggling to produce 1,000 model three cars a week. There are also reports of some quality issues with the new vehicle, which would only serve to further dog production.
Experts caution that Tesla increasingly is in a race against the clock, as a growing number of automakers announce plans to electrify part of all of their fleets.
If they follow through, Tesla will suddenly find itself going from being the only game in town to just one of many choices for consumers looking for an electric car, whether that’s on the low end (consider the Chevy Bolt) or the high (the forthcoming Porsche Mission E sedan).
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