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ED CARSON

Tesla Autopilot Probe: Regulators See 'Resolution Soon'

The National Highway Traffic Safety Administration will end its two-year Tesla Autopilot probe "soon," its acting chief told Reuters Thursday. Tesla was little changed in late trade.

"We'll get to a resolution (of the Tesla probe)," acting NHTSA Administrator Ann Carlson told Reuters.

NHTSA opened its Tesla Autopilot in August 2021, initially focusing on a number of Tesla crashes into stopped emergency vehicles. It's also probing if Tesla vehicles adequately monitor drivers to ensure they are paying attention to the driver-assistance system.

The Autopilot investment was expanded in June 2022.

Carlson gave no indication of what the NHTSA will do, other an expectation that it will come "relatively soon."

Tesla Autopilot Probe Remedies?

In theory, NHTSA could issue a sweeping recall of Autopilot, order relatively minor changes or take no action at all. One option is to improve Tesla's monitoring.

Tesla currently relies on a "hands on" monitoring system that requires drivers to keep their hands on the wheel. But that's not hard to circumvent, and drivers may not be paying much attention to the road.

Most other Level 2 driver-assistance systems use hands-off system that rely on camera-based monitoring systems to ensure driver attention. Some Tesla vehicles now come with CMS systems, though some experts have said Tesla needs better cameras, properly positioned.

Tesla stock was roughly flat in late trade. Shares fell 2.9% to 230.04 in Thursday's market trading, ending a three-day win streak amid a broad reversal.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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