Tesla faces mounting scrutiny over FSD safety

A series of stories highlight the continued — and apparently growing — scrutiny of Tesla’s automated driving system known as Full Self-Driving (Supervised), or FSD (Supervised). The system is facing intense pressure following a fatal crash involving a Tesla that struck a home in Texas and killed a 76-year-old woman. While the driver told police that Autopilot was engaged, Ashok Elluswamy, vice president of AI software at Tesla, claimed the driver manually overrode self-driving by pressing the accelerator.

The US National Highway Traffic Safety Administration (NHTSA) and the US National Transportation Safety Board (NTSB) have opened investigations into the Texas crash. Additionally, Tesla recently settled a lawsuit connected to a fatal 2023 crash involving a vehicle using FSD (Supervised), which is part of a separate NHTSA investigation into whether the system can detect and respond to reduced roadway visibility. The regulatory pressure comes as other mobility players face legal hurdles; Uber is currently facing a lawsuit by shareholders that accuse the board and management of putting profits ahead of compliance and safety.

Meanwhile, other autonomous vehicle operators are expanding. Waymo, which has dropped its waitlist in Nashville and set up an entity in Germany, is on pace to import 3,156 vehicles into the U.S. this year, according to a report by MoffettNathanson. The vehicles, designed in Sweden and manufactured in China, are equipped with Waymo’s self-driving system once they arrive in the U.S.

Other developments across the mobility sector highlight a mix of financial restructuring and new funding:

• Lucid Motors: The EV manufacturer is laying off 18% of its workforce, or around 1,500 employees, and cutting production shifts in Arizona. CEO Silvio Napoli stated the cuts are intended “to simplify the company, sharpen execution, and position Lucid to become more competitive over time.”
• Aseon Labs: The startup raised $10 million in a seed round to develop mobile pods for robotaxis.
• Elroy Air: The autonomous heavy-cargo drone startup plans to go public via a merger with Columbus Circle Capital Corp II, a deal valued at about $1 billion.
• Partly: The automotive repair AI startup raised $50 million in a Series B round.
• Spiro: The electric vehicle platform finalized a $55 million investment from NewTrails Capital.
• Terawatt Infrastructure: The fleet charging provider set up a credit facility to borrow as much as $300 million.
• Slate Auto: The company is offering an electric truck starting at $24,950.

Why it matters

Tesla is facing increased regulatory scrutiny regarding its automated driving systems following fatal crashes, while other autonomous vehicle companies like Waymo continue to expand operations and face their own regulatory and supply chain challenges.