Tesla owner Greg Wester, whom the office at the California Attorney General’s office called to inquire about his August 2022 Federal Trade Commission complaint regarding his Tesla’s “phantom braking” issue and what he believed to be false claims surrounding the company’s Full Self-Driving (FSD) system, provided information on the investigation.
Elon Musk, CEO of Tesla, first claimed in 2016 that all new Tesla EVs would be equipped with the required hardware for fully self-driving. In fact, the firm has taken so long to respond that it is now offering drivers a “one-time” transfer of their bought upgrade to their subsequent EV from the company.
Tesla is having a moment swimming in multiple issues and this is not referring to the fact that Tesla’s Texas plant has now successfully manufactured a Cybertruck or that it has the US EV charging standard conflict won. It is engaged in a number of legal and regulatory issues regarding the safety of its vehicles.
Owners of Tesla vehicles who claim they experience “phantom braking”—where their vehicles suddenly brake when in Autopilot mode for no cause —have filed a lawsuit against the company in California. The company is recalling thousands of its vehicles in China for the same issue. Additionally, the National Highway Traffic Safety Administration (NHTSA) in the US has started an investigation into the allegedly odd braking actions of the vehicle.
Not only is that ongoing. The Department of Justice is investigating Tesla’s potential liability for fatal and non-fatal crashes, connected to its Autopilot issue, which may be more prevalent than previously assumed.
Additionally, the NHTSA is looking into a number of accidents in which Teslas using Autopilot collided with stationary emergency vehicles. Additionally, despite the fact that the recall is essentially only a required software update, the agency has forced the company to recall over 360,000 Teslas that have FSD beta installed.
Despite the many overwhelming legal issues staring Tesla in the face, the company’s Revenue soars amid rampant EV price slashes. Tesla shared its second-quarter earnings report with the public, stating that it generated $24.9 billion in revenue and $3.1 billion in net profits. In comparison to the $16.9 billion in revenue from the second quarter of 2022, that is a 47% rise year over year.