Tesla faces scrutiny as FSD systems under federal investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2025
0mins
Should l Buy TSLA?
Source: SeekingAlpha
Tesla Inc's stock is down 3.00% in pre-market trading, hitting a 20-day low amid broader market declines with the Nasdaq-100 down 1.26% and the S&P 500 down 1.01%.
The National Highway Traffic Safety Administration (NHTSA) has escalated its investigation into Tesla's Full Self-Driving (FSD) systems, assessing their safety in low visibility conditions, which could impact approximately 3.2 million vehicles. This investigation follows multiple complaints regarding collisions linked to FSD, including a fatal incident, raising significant safety concerns that could negatively affect Tesla's stock price and consumer confidence.
The ongoing scrutiny of Tesla's FSD systems comes at a time when the electric vehicle market is becoming increasingly competitive. Investors are likely to monitor the situation closely, as the outcome of the investigation could have substantial implications for Tesla's reputation and market position.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 355.280
Low
25.28
Averages
401.93
High
600.00
Current: 355.280
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Delivery Expectations: Nio forecasts Q1 2026 deliveries between 80,000 and 83,000 units, and if it meets the midpoint of 33,500 units, it could further boost stock prices and enhance market confidence in its profitability.
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See More
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- Surge in Trading Volume: The trading volume reached 73.4 million shares, nearly 19% above the three-month average of 61.5 million shares, suggesting a significant increase in market interest towards Tesla, potentially signaling a shift in investor sentiment.
- Declining Delivery Expectations: Despite the stock rebound, first-quarter delivery expectations are projected between 365,000 and 366,000, indicating a sequential decline that highlights the disconnect between improving sentiment and weakening short-term demand, which could impact future performance.
- Future Key Indicator: The delivery report on April 2 will be a crucial indicator of whether Tesla's core auto business can stabilize; if demand remains weak, it may pose challenges to the company's autonomy and long-term growth expectations.
See More
