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Tesla Under Investigation After Fatal Model X Crash In South Korea

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Tesla Under Investigation After Fatal Model X Crash In South Korea

Tesla Inc’s (NASDAQ: TSLA) Model X is a subject of a detailed investigation in South Korea after a fatal crash, Reuters reports.

The South Korean forensics agency would look into the car and attempt to pinpoint the accident’s cause after its driver told the police it went out of control and crashed into a wall.

What Happened: The untoward event, which led to one passenger’s death and injured two others, occurred in a parking lot when a Model X caught fire after ramming into a wall.

Reportedly, it took an hour to douse the fire. The driver claims that the car spiraled out of control just before the crash, Reuters reports.

In mid-January this year, the U.S. National Highway Traffic Safety Administration (NHTSA) investigated 14 unique cases of car crashes involving the autopilot system in Tesla’s electric cars. 

The South Korean authorities are also conducting similar investigations into the carmaker’s autopilot systems.

Why Does It Matter: Reuters claims, based on CarIsYou Data Research Institute’s reports, that Tesla’s sold 11,601 units in South Korea between January and November this year, a 4.75x year-over-year growth.

According to CNBC, the NHTSA investigation could broadly cover almost 500,000 Tesla vehicles, including the Model X, Model 3, and Model S vehicles manufactured between 2013 and 2019.

In October, NHTSA ordered Tesla to callback certain Model Y vehicles because of a software issue causing Tail light malfunctions. In the same week, Tesla also recalled 30,000 cars imported in China over defective suspensions.

Price Action: TSLA shares are trading lower by 1.57% to $595 in the pre-market session on the last check Thursday.

Image courtesy of Tesla

 

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