Electric car maker, Tesla Inc. (TSLA) has agreed to stop the video game streaming function called “Passenger Play” when the cars are moving. The decision was taken after the U.S. National Highway Traffic Safety Administration (NHTSA) sighted concerns about vehicle safety.
Meanwhile, Tesla shares rose 5.8% closing at $1,067 on December 23.
Passenger Play Feature
Recently, the NHTSA started a vehicle safety investigation over 580,000 Tesla cars sold since 2017. Responding to the probe, Tesla has decided to stop the “Passenger Play” function in moving cars.
According to Tesla, a software update will lock the video streaming function when vehicles are moving, and allow passengers to play video games only when the vehicle is parked.
The NHTSA said that although the driver of the vehicle cannot play the games, the screen display distracts the driver’s attention causing accidents. The NHTSA says that this distraction may be the possible reason for a 2018 fatal accident of a Tesla car that was on Autopilot mode in California.
NHTSA Comments
The NHTSA said, “Safety is central to NHTSA’s mission and we are committed to improving safety for all road users. Distraction-affected crashes are a concern, particularly in vehicles equipped with an array of convenience technologies such as entertainment screens. We are aware of driver concerns and are discussing the feature with the manufacturer.”
The agency added, “NHTSA constantly assesses how manufacturers identify and safeguard against distraction hazards that may arise due to faults, misuse, or intended use of convenience technologies, including infotainment screens.”
Consensus View
Recently, Credit Suisse analyst Dan Levy reiterated a Hold rating on the TSLA stock with a price target of $830, which implies 22.2% downside potential to current levels.
Overall, the stock has a Moderate Buy consensus rating based on 13 Buys, 8 Holds, and 5 Sells. The average Tesla price target of $1,004.33 implies 5.9% downside potential to current levels. Shares have gained 61.2% over the past year.
News Sentiment
TipRanks’ News Sentiment and Media Buzz Analysis shows the combined News Score based on TSLA’s News Sentiment and Media Buzz.
TipRanks data shows that the News Score for Tesla is currently Positive based on 317 articles published over the past seven days. 79% of the articles have a Bullish Sentiment compared to a sector average of 63% while 21% of the articles have a Bearish Sentiment compared to a sector average of 37%.
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