The parents of 19-year-old college student Krysta Tsukahara, who died late last year when a college mate crashed a Tesla Cybertruck into a retaining wall, have dragged the electric vehicle maker Tesla (TSLA) to court. The parents are alleging that a design drawback in the electric pickup truck prevented their daughter from being able to open the door and escape the vehicle after it erupted in flames upon crashing.
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According to the patrol authorities, Tsukahara, Dixon, and another fellow student, Jack Nelson–the three of whom died from the accident–had been drinking alcohol at a party before crashing while heading back home. The California Highway Patrol also said they had taken hard drugs such as cocaine before the fatal crash. Another college mate, Jordan Miller, survived the crash.
However, Tsukahara’s parents, in their lawsuit, accused Tesla of not acting promptly to fix a design problem that makes the door difficult to open during emergencies. The lawsuit follows a recent public statement by Alijah Arenas, a U.S. college basketball player who survived a Cybertruck crash in April, alleging that his vehicle’s keypad and steering wheel failed to respond after he bumped into a tree.
Tesla’s Self-Driving Tech under Investigation
The lawsuit comes as Tesla is facing an investigation by U.S. auto safety authorities following complaints from parents about their children being stuck in the back seats of their 2021 Tesla Model Y vehicles due to low battery power. Tesla is also the center of another public investigation alleging that the company reported several incidents involving its driver-assisted and self-driving vehicles several months later, rather than within five days, as required by the country’s regulations.
These developments come as Tesla’s full self-driving (FSD) technology has further raised safety concerns and is facing criticism from two U.S. lawmakers. This is even as the company continues to expand testing of its FSD across the U.S., with Tesla incentivizing billionaire CEO Elon Musk to spearhead sales of millions of its vehicles, including robotaxis.
Is Tesla a Buy, Sell, or Hold?
Tesla’s shares currently have a Hold consensus rating from Wall Street analysts, as seen on TipRanks. This is based on 14 Buys, 12 Holds, and eight Sells assigned by 34 Wall Street analysts over the past three months. Moreover, the average TSLA price target of $345.28 suggests a potential downside risk of about 20%.
