The Real-World Implications of Tesla's Autopilot Recall: A Reflection of Elon Musk's Bold Promises
Elon Musk's ambition for perfection often precedes reality, as demonstrated by Tesla's Autopilot recall This incident highlights the consequences of exaggerated claims, questioning the reliability of his products
Elon Musk's message to the world is simple: "I create top-quality products, so I have the freedom to speak my mind." At the New York Times DealBook Summit, he posed the question, "Regardless of your feelings towards me, are you interested in the best car or not?"
Elon Musk's persistent boasting extends beyond his online presence and rare media interviews. His ambitious promises also infiltrate Tesla's official marketing materials, which are used to promote car sales and maintain the soaring stock value upon which Musk's wealth depends. As a result, Tesla owners are now facing the repercussions of a "Autopilot" feature that is being investigated by US safety regulators, leading to the recall of nearly all 2 million Tesla cars on US roads this week.
The Autopilot feature, despite its name, does not allow the car to drive itself, and Full Self Driving, or FSD, also does not permit the driver to take their eyes off the road or their hands off the wheel. However, Tesla has promoted its Autopilot system as if it does allow cars to drive themselves, as demonstrated in a 2016 video on the company's website.
The National Highway Traffic Safety Administration conducted a study of almost 1,000 Tesla-related crashes and concluded that the Autopilot system may lead drivers to believe the car can drive itself in specific circumstances, leading to potential misuse. Despite this, Tesla, which shut down its public relations department in 2020, did not respond to a request for comment and neither the company nor CEO Elon Musk have issued statements regarding the recall.
Tesla's driver-assist systems are central to the business model that has propelled the company to become the most valuable automaker in the world, despite having significantly fewer sales than its competitors. Investors continue to eagerly buy into the hype, with Tesla's stock briefly dipping on Wednesday but still showing an overall increase of over 110% for the year. Over the past five years, the stock has surged by more than 840%, leading to Elon Musk being recognized as the world's wealthiest person.
Despite well-documented issues with its Full Self-Driving systems, including unexpected swerving, disregarding stop signs, and collisions with emergency vehicles, Tesla bulls remain unconcerned. On Wednesday, Tesla's stock rose alongside the rest of the market.
"Despite lingering safety concerns, Teslas FSD capabilities are gaining traction in the market," noted Wedbush analyst Dan Ives in a client note on Wednesday. "We see this as an additional value driver in the TSLA growth story in the years to come."
With such positive reinforcement, Musk's hype only continues to grow. In October, Musk excited investors with his discussion of how Tesla's investment in artificial intelligence will revolutionize its crucial self-driving systems. He mentioned that in the future, AI "has the potential to make Tesla the most valuable company in the world by farâ¦If you have fully autonomous cars at scale and fully autonomous humanoid robots that are truly useful, its not clear what the limit is."
Tesla still has a long way to go, despite its advanced features and automated branding. According to official Tesla manuals, human drivers must remain alert while using these features, but this hasn't deterred some individuals from attempting to rely solely on them. MotorTrend, an auto news site, has compiled a continuing list of incidents involving crashes while using Autopilot and Full Self Driving features.
The company has encountered numerous legal actions concerning the Autopilot system. In a recent development, a Florida judge determined that there was "reasonable evidence" to suggest that Musk and other executives promoted Autopilot's capabilities knowing it was faulty. The case is connected to a 2019 accident in which a Tesla driver activated the Autopilot only moments before his vehicle collided with a semi-truck, resulting in the driver's death. This ruling was reported by Reuters.
In 2019, Tesla stated that drivers have logged over a billion miles with Autopilot engaged, and their data indicates that drivers supported by Autopilot are safer than those operating without assistance, as long as it is used properly by an attentive driver who is prepared to take control at all times. This year, Tesla was found not liable in two California cases regarding alleged product defects.
Naturally, it is the responsibility of a CEO to promote their company's products and generate value for shareholders. However, the exaggerated claims made by Musk regarding Tesla's self-driving technology are particularly concerning due to the nature of the product. Despite being a feature found in many vehicles, including those beyond Tesla, driver-assist technology continues to lack significant regulation.
This essentially means that it operates on an honor system. It's expected that drivers keep their hands on the wheel, stay alert, and avoid texting while using the technology. But at the same time, there is a suggestion that the vehicle is capable of driving itself.
