NHTSA Investigates Tesla's Smart Summon Features
The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into Tesla's Smart Summon and Actually Smart Summon features. These features enable drivers to remotely maneuver their vehicles using a smartphone app. The investigation was prompted by numerous complaints reporting that Tesla vehicles using these features have failed to detect obstacles, including parked cars, leading to collisions.
Details of the Investigation and Complaints
NHTSA's Office of Defects Investigation has received 12 complaints specifically concerning Smart Summon and one related to Actually Smart Summon, which is an enhanced version of the original feature. Additionally, the office has reviewed at least three media reports documenting other incidents involving Actually Smart Summon. This investigation underscores growing safety concerns surrounding Tesla's autonomous driving technologies.
Bank of America Downgrades Tesla Despite Higher Price Target
In related news, Bank of America Securities downgraded Tesla from "buy" to "neutral," despite simultaneously raising its price target for the company's stock from $400 to $490. This new target represents a roughly 25% premium over Tesla's closing price of $394.36 on Tuesday, after the stock experienced a 4.1% decline.
Reasons for the Downgrade and Future Outlook
Despite the increased price target, Bank of America analysts cited "high execution risk" and stated that Tesla's current trading price already reflects much of their base-case expectations. The analysts are monitoring several potential growth catalysts for Tesla in the coming year, including the anticipated release of a more affordable Tesla model in the first half of the year, the planned launch of a robotaxi service by mid-year, and the scaling up of Megapack commercial energy storage battery production at Tesla's Shanghai plant.
Comments