NHTSA REQUESTS MORE INFO FROM TESLA ON AUTOPILOT RECALL OR FACE $135M FINE

Tesla (NASDAQ:TSLA) is facing civil penalties of as much as $135M if it does not comply with a request from the National Highway Traffic Safety Administration to provide data on the December autopilot recall. To address deficiencies with autopilot, Tesla (TSLA) updated the software to prevent misuse. But now, the NHTSA wants to know if the update is enough.

In a letter to Tesla’s (TSLA) director of field quality, the Office of Defects Investigation has opened a recall inquiry to “investigate the remedy effectiveness” of the recall. Specifically, NHTSA wants to know the number of “strikes” or warnings a driver received before being kicked out of self-driving mode, known as a "strikeout."

Tesla (TSLA) has until July 1 to comply, or can file an extension 5-days before. If found in violation, Tesla (TSLA) can be fined up to $27,168 per violation per day with a maximum of $135,828,178.

Tesla (TSLA) is also coming under pressure Tuesday morning on downbeat sales data out of China. The EV maker sold 18% fewer vehicles in China from a year ago, industry data showed. Deliveries of China-made Model 3 and Model Y vehicles were down 30.2% from March. By contrast, BYD (BYDDY, BYDDF) sold 49% more cars in April according to data from the China Passenger Car Association.

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2024-05-07T14:00:28Z dg43tfdfdgfd