Deepwater Asset Management's investor Gene Munster thinks the ongoing NHTSA probe into Tesla Inc.'s (NASDAQ:TSLA) Full Self-Driving (FSD) system could prove to be beneficial for the EV giant.
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Tesla Stands Alone In Consumer Autonomy, Says Gene Munster
In a video shared on the social media platform X on Thursday, the investor shared his thoughts on the probe into Tesla. "I don't think that they're [NHTSA] going after Tesla per se," the investor said, adding that the reason for the automaker being in the headlines boils down to the fact that "Tesla just stands alone in this category of consumer autonomy."
Munster outlined that the investigation aims to recall over 2.8 million vehicles for over 60 cases of traffic violations and 14 accidents "over an undisclosed period" but added that it would most likely be over a year. He added that the 14 accidents, when compared to the number of U.S. accidents per month came to a ratio of 0.000028%.
"Good that they're doing this, that they are pushing this technology," Munster said, adding that Tesla and Elon Musk's willingness to make traffic safer should be applauded. "I think the market is increasingly going to appreciate" the company's autonomous efforts.
Tesla's FSD Lawsuits
The probe comes as Tesla has been faced with multiple lawsuits over the FSD system, including a class action lawsuit in California as well as a lawsuit filed by investors.
Tesla also faces a lawsuit by owners in China, alleging the company failed to provide the autonomous driving capabilities despite paying them. Tesla's recent $243 million settlement in a case involving a Tesla vehicle on autopilot crashing into a parked SUV in Florida, resulting in the death of a woman.
Gary Black Says Tesla Needs Good PR, Jonathan Morrison Seeks Tougher Oversight
Meanwhile, Future Fund LLC's managing director, Gary Black, said that Tesla needs a good PR staff to fight off regualtory hurdles such as the NHTSA probe. He also highlighted that it was obvious that Jonathan Morrison would try to make a name for himself.
Morrison, who is President Donald Trump's pick to lead NHTSA, had earlier called for tougher oversight on autonomous driving companies in the U.S. during his confirmation hearing at the Senate.
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