On March 19, U.S. transportation authorities launched an investigation into Tesla’s Full Self-Driving (FSD) system, a step just short of a recall, causing Tesla’s stock to plummet by over 3%.
Tesla’s shares fell 3.18% to close at $380.30 on the New York Stock Exchange, reducing the company’s market capitalization to 1.427 trillion USD.
The National Highway Traffic Safety Administration (NHTSA) announced it would investigate 3.2 million vehicles equipped with the FSD feature, citing nine accidents related to Tesla’s FSD.
Officials stated that the FSD system failed to detect road conditions that impaired visibility and did not provide prompt warnings when camera performance degraded prior to accidents.
This investigation represents the final stage before the agency potentially issues a recall request.
Following this news, Tesla’s stock dropped more than 3%, contributing to a 15% decline for the company since the beginning of the year.