Tesla (TSLA) Granted Five-Week Extension for FSD Defect Investigation Response
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Investigation Extension: Tesla has been granted a five-week extension to respond to a defect investigation involving 8,313 potential traffic violations related to its FSD system, indicating heightened regulatory scrutiny that could impact the company's compliance and market trust.
- Safety Concerns: The NHTSA's probe covers nearly 2.9 million vehicles equipped with FSD, with at least 58 reported traffic safety issues, including 14 crashes and 23 injuries, highlighting significant safety risks that could lead to a recall if deemed unreasonable.
- Market Impact: California has accused Tesla of overstating FSD capabilities and threatened a 30-day sales suspension, which could negatively affect Tesla's sales and brand image, exacerbating market skepticism regarding its autonomous driving technology.
- Stock Volatility: Tesla's shares have declined by 2.5% in early 2026, reflecting investor concerns over the regulatory challenges and potential recall risks the company faces, which may impact its future financing and market performance.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 384.14 USD with a low forecast of 19.05 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
14 Buy
10 Hold
10 Sell
Hold
Current: 438.570
Low
19.05
Averages
384.14
High
600.00
Current: 438.570
Low
19.05
Averages
384.14
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.
