Tesla Motors Inc(NASDAQ:TSLA) has fought back over claims it misled investors by failing to report on time, a crash involving one of its cars that led to one fatality. CEO, Elon Musk, has hit out at a report appearing on Fortune, terming it ‘fundamentally incorrect.’ The executive insists there was nothing unusual, about the May 7 crash.
Autopilot Safety Standards Questioned
The pioneer of electric cars in a statement maintains that drivers using Autopilot remain safer than those not using it amidst growing concerns do. The statement comes at a time of increased pressure and scrutiny on the company’s self-driving software. On its defense, the Menlo parked automaker maintains that the software has been used in over 100 miles of driving by tens of thousands of customers with zero confirmed fatalities
The May 7 incidence, which resulted in the death of Joshua Brown, however, continues to divide opinion and the reputation of the automaker in the industry. Tesla has tried to calm the storm by insisting that the Autopilot software cannot prevent all road fatalities but as it appears, not all people are happy with the defense.
Musk under Siege
Musk is reported to have made a combined $2 billion after selling stock on May 18 prior to disclosing the crash, which occurred on May 7. Selling stock before making public, details about the accident is one of the things that continue to rattle investors on Wall Street.
There are also claims that the automaker did not inform the National Highway Traffic Safety Administration that at the time of the crash on May 7, the car was on Autopilot. Tesla reputation is at risk more than ever giventhat it has all along marketed the Model S as a safe car especially on Autopilot.
In a May 10 EC, filling Tesla Motors Inc (NASDAQ:TSLA) did indeed acknowledge that it could be the subject of product liability claims because of the May 7 accident. The company should as a result have furnished investors with all the details about the crash, to allow them to make informed decisions prior to regulators opening investigations into the matter.