NHTSA Closes Investigation into Tesla Model Y Vehicles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TSLA?
Source: seekingalpha
- Investigation Closure: The National Highway Traffic Safety Administration (NHTSA) has closed its investigation into approximately 120,089 Tesla Model Y vehicles without any action taken, indicating a relatively lenient regulatory stance towards Tesla.
- Safety Concern Assessment: Initiated in 2023, the investigation focused on reports of steering wheels potentially detaching due to a missing retaining bolt, following two complaints of steering wheel detachment while in motion, highlighting significant safety concerns.
- Manufacturing Process Review: NHTSA assessed the “scope, frequency, and manufacturing processes” related to the issue, noting that both vehicles were built in early January 2023 at Tesla's Austin and Fremont plants and underwent final assembly repairs before delivery.
- Potential for Future Action: Although the investigation has been closed, NHTSA emphasized that this does not imply the absence of safety-related defects and indicated that further action may be taken if new information arises, reflecting ongoing vigilance regarding consumer safety.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 376.300
Low
25.28
Averages
401.93
High
600.00
Current: 376.300
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.
Tesla Surpasses Expectations with Earnings and Robotaxi Launch
- Earnings Beat: Tesla's Q1 revenue rose 16% year-over-year to $22.4 billion, exceeding analyst expectations, while its EPS also outperformed forecasts, and the $1.4 billion in free cash flow highlighted a significant improvement in financial health.
- Robotaxi Expansion: The launch of driverless Robotaxi services in Dallas and Houston marks Tesla's third city for this initiative, following Austin, representing a crucial step towards achieving nationwide Robotaxi operations, despite ongoing regulatory hurdles.
- Strategic Shift: Tesla is pivoting towards higher-margin businesses such as Robotaxis, humanoid robots, and AI, which could drive future profitability, even as its traditional car sales face challenges like declining market share and rising inventory levels.
- Market Challenges and Opportunities: While Tesla has made progress in Robotaxi deployment, it continues to face stiff competition from rivals like BYD and Volkswagen in the EV market, necessitating investor vigilance regarding its long-term growth potential amid stock volatility.
See More
Tesla Earnings Report Sparks Diverging Opinions
- EV Sales Surge: Tesla reported over 150% quarter-over-quarter growth in EV deliveries in EMEA, particularly in France and Germany, despite overall delivery figures missing Wall Street estimates, indicating a resurgence in demand and maintaining the company's competitive edge in the EV market.
- FSD Subscription Growth: The company's Full Self-Driving (FSD) subscriptions saw a 16.4% sequential increase and a 51% year-over-year rise, with declining churn rates as more drivers recognize the benefits of autonomy, further solidifying Tesla's position in the smart driving sector.
- Robotaxi Rollout Delays: Although CEO Elon Musk promised that robotaxis would be available to half of the U.S. population by 2025, only 13 unsupervised robotaxis are currently operational in Austin, reflecting a more cautious rollout strategy, with broader deployment expected in 2026.
- Increased Capital Expenditures: Tesla anticipates capital expenditures to reach at least $25 billion by 2026, primarily for hardware upgrades and the Terafab project, indicating financial pressure on the rapid deployment of robotaxis, which may lead to short-term stock price volatility.
See More
TESLA SUBMITS FORM S-8 TO REGISTER 303.96 MILLION SHARES OF COMMON STOCK FOR ELON MUSK'S 2018 CEO PERFORMANCE AWARD
Tesla's Filing: Tesla has filed a Form S-8 to register 303.96 million shares of its common stock for CEO Elon Musk's performance award from 2018.
Elon Musk's Award: The filing pertains to a performance-based award that was granted to Elon Musk, reflecting his role and contributions as CEO.
See More
Musk's Lawsuit Against OpenAI Begins Amid Controversy
- Lawsuit Background: Musk's civil lawsuit against OpenAI and CEO Altman begins in Oakland, California, where he claims they abandoned the nonprofit mission for profit, seeking $150 billion in damages and a return to nonprofit status.
- Financial Investment: Musk invested approximately $38 million in seed funding for OpenAI but feels betrayed after its transition to a for-profit entity in 2019, alleging that Altman and Brockman exploited the company for personal gain.
- Potential Impact: The lawsuit could complicate OpenAI's leadership and future IPO plans, heightening public concerns about AI technology and potentially affecting its partnership with Microsoft.
- Witness Lineup: Musk, Altman, and Microsoft CEO Nadella are expected to testify, with the judge aiming for jurors to begin deliberations on the defendants' liability by May 12, which could have significant implications for OpenAI's future trajectory.
See More
SpaceX Approves Elon Musk's Futuristic Compensation Plan
- Compensation Plan Overview: SpaceX's board has approved a compensation package for founder Elon Musk that includes 200 million super-voting restricted shares if the company achieves a market value of $7.5 trillion and establishes a permanent human colony on Mars, reflecting the company's ambitious vision for the future.
- Data Center Goals: Additionally, Musk could earn 60.4 million restricted shares if SpaceX operates data centers in space providing at least 100 terawatts of computing power, significantly enhancing the company's technological capabilities and competitive position in the market.
- Unique Compensation Structure: The rewards are contingent on achieving specific valuation targets, meaning Musk will receive no shares if these goals are not met, a structure that is virtually unprecedented in the industry and may create tensions between SpaceX investors and Tesla shareholders.
- Market Expectation Management: While the $7.5 trillion market cap target may seem extraordinary, it helps set clear expectations for investors, indicating SpaceX's commitment to innovation and long-term objectives.
See More
NHTSA Closes Investigation into Tesla Model Y Vehicles
- Investigation Closure: The National Highway Traffic Safety Administration (NHTSA) has closed its investigation into approximately 120,089 Tesla Model Y vehicles without any action taken, indicating a relatively lenient regulatory stance towards Tesla.
- Safety Concern Assessment: Initiated in 2023, the investigation focused on reports of steering wheels potentially detaching due to a missing retaining bolt, following two complaints of steering wheel detachment while in motion, highlighting significant safety concerns.
- Manufacturing Process Review: NHTSA assessed the “scope, frequency, and manufacturing processes” related to the issue, noting that both vehicles were built in early January 2023 at Tesla's Austin and Fremont plants and underwent final assembly repairs before delivery.
- Potential for Future Action: Although the investigation has been closed, NHTSA emphasized that this does not imply the absence of safety-related defects and indicated that further action may be taken if new information arises, reflecting ongoing vigilance regarding consumer safety.
See More
Tesla Surpasses Expectations with Earnings and Robotaxi Launch
- Earnings Beat: Tesla's Q1 revenue rose 16% year-over-year to $22.4 billion, exceeding analyst expectations, while its EPS also outperformed forecasts, and the $1.4 billion in free cash flow highlighted a significant improvement in financial health.
- Robotaxi Expansion: The launch of driverless Robotaxi services in Dallas and Houston marks Tesla's third city for this initiative, following Austin, representing a crucial step towards achieving nationwide Robotaxi operations, despite ongoing regulatory hurdles.
- Strategic Shift: Tesla is pivoting towards higher-margin businesses such as Robotaxis, humanoid robots, and AI, which could drive future profitability, even as its traditional car sales face challenges like declining market share and rising inventory levels.
- Market Challenges and Opportunities: While Tesla has made progress in Robotaxi deployment, it continues to face stiff competition from rivals like BYD and Volkswagen in the EV market, necessitating investor vigilance regarding its long-term growth potential amid stock volatility.
See More
Tesla Earnings Report Sparks Diverging Opinions
- EV Sales Surge: Tesla reported over 150% quarter-over-quarter growth in EV deliveries in EMEA, particularly in France and Germany, despite overall delivery figures missing Wall Street estimates, indicating a resurgence in demand and maintaining the company's competitive edge in the EV market.
- FSD Subscription Growth: The company's Full Self-Driving (FSD) subscriptions saw a 16.4% sequential increase and a 51% year-over-year rise, with declining churn rates as more drivers recognize the benefits of autonomy, further solidifying Tesla's position in the smart driving sector.
- Robotaxi Rollout Delays: Although CEO Elon Musk promised that robotaxis would be available to half of the U.S. population by 2025, only 13 unsupervised robotaxis are currently operational in Austin, reflecting a more cautious rollout strategy, with broader deployment expected in 2026.
- Increased Capital Expenditures: Tesla anticipates capital expenditures to reach at least $25 billion by 2026, primarily for hardware upgrades and the Terafab project, indicating financial pressure on the rapid deployment of robotaxis, which may lead to short-term stock price volatility.
See More
TESLA SUBMITS FORM S-8 TO REGISTER 303.96 MILLION SHARES OF COMMON STOCK FOR ELON MUSK'S 2018 CEO PERFORMANCE AWARD
Tesla's Filing: Tesla has filed a Form S-8 to register 303.96 million shares of its common stock for CEO Elon Musk's performance award from 2018.
Elon Musk's Award: The filing pertains to a performance-based award that was granted to Elon Musk, reflecting his role and contributions as CEO.
See More
Musk's Lawsuit Against OpenAI Begins Amid Controversy
- Lawsuit Background: Musk's civil lawsuit against OpenAI and CEO Altman begins in Oakland, California, where he claims they abandoned the nonprofit mission for profit, seeking $150 billion in damages and a return to nonprofit status.
- Financial Investment: Musk invested approximately $38 million in seed funding for OpenAI but feels betrayed after its transition to a for-profit entity in 2019, alleging that Altman and Brockman exploited the company for personal gain.
- Potential Impact: The lawsuit could complicate OpenAI's leadership and future IPO plans, heightening public concerns about AI technology and potentially affecting its partnership with Microsoft.
- Witness Lineup: Musk, Altman, and Microsoft CEO Nadella are expected to testify, with the judge aiming for jurors to begin deliberations on the defendants' liability by May 12, which could have significant implications for OpenAI's future trajectory.
See More
SpaceX Approves Elon Musk's Futuristic Compensation Plan
- Compensation Plan Overview: SpaceX's board has approved a compensation package for founder Elon Musk that includes 200 million super-voting restricted shares if the company achieves a market value of $7.5 trillion and establishes a permanent human colony on Mars, reflecting the company's ambitious vision for the future.
- Data Center Goals: Additionally, Musk could earn 60.4 million restricted shares if SpaceX operates data centers in space providing at least 100 terawatts of computing power, significantly enhancing the company's technological capabilities and competitive position in the market.
- Unique Compensation Structure: The rewards are contingent on achieving specific valuation targets, meaning Musk will receive no shares if these goals are not met, a structure that is virtually unprecedented in the industry and may create tensions between SpaceX investors and Tesla shareholders.
- Market Expectation Management: While the $7.5 trillion market cap target may seem extraordinary, it helps set clear expectations for investors, indicating SpaceX's commitment to innovation and long-term objectives.
See More
NHTSA Closes Investigation into Tesla Model Y Vehicles
- Investigation Closure: The National Highway Traffic Safety Administration (NHTSA) has closed its investigation into approximately 120,089 Tesla Model Y vehicles without any action taken, indicating a relatively lenient regulatory stance towards Tesla.
- Safety Concern Assessment: Initiated in 2023, the investigation focused on reports of steering wheels potentially detaching due to a missing retaining bolt, following two complaints of steering wheel detachment while in motion, highlighting significant safety concerns.
- Manufacturing Process Review: NHTSA assessed the “scope, frequency, and manufacturing processes” related to the issue, noting that both vehicles were built in early January 2023 at Tesla's Austin and Fremont plants and underwent final assembly repairs before delivery.
- Potential for Future Action: Although the investigation has been closed, NHTSA emphasized that this does not imply the absence of safety-related defects and indicated that further action may be taken if new information arises, reflecting ongoing vigilance regarding consumer safety.
See More
