Two U.S. senators are asking federal safety officials to open a formal investigation into EV maker Tesla’s (TSLA) Full Self-Driving (FSD) software after an NBC News report raised some concerns. Indeed, the report included complaints from Tesla drivers who said that the software sometimes failed to notice oncoming trains at railroad crossings. In a letter to the National Highway Traffic Safety Administration (NHTSA), Senators Edward Markey of Massachusetts and Richard Blumenthal of Connecticut said this issue could lead to deadly accidents and urged the agency to take immediate action.
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The senators said that Tesla’s software, which is marketed as “Full Self-Driving (Supervised),” poses a major safety risk if it can’t safely handle railroad crossings. In fact, they pointed to a video from 2024 that showed a Tesla in FSD mode crashing into a crossing arm and skidding off the road in Ohio. Separately, according to NBC News, six Tesla drivers reported experiencing issues at rail crossings, and four of them shared videos. The outlet also found seven similar videos online and 40 written complaints from other drivers.
Interestingly, the NHTSA has stated that it’s aware of the issue and has spoken with Tesla. However, the senators believe that this is not enough and are calling for a deeper investigation. They also criticized the confusing name of the software, which may give drivers the wrong impression about what it can safely do. However, it is worth noting that Tesla states in its manual that FSD requires constant human supervision. In addition, CEO Elon Musk said on X that a new version of FSD is coming soon, but it’s unclear if it will fix the problems at railroad crossings.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 12 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $345.28 per share implies 20.7% downside risk.
