The Trump transition team is pushing to scrap a crash-reporting rule opposed by EV maker Tesla (TSLA). According to CNBC, the move could undermine the government’s ability to regulate and investigate the safety of automated driving systems. Tesla, led by Elon Musk, has reported over 1,500 crashes under this rule, which has made it a primary focus of NHTSA investigations. Critics of the rule, such as trade groups representing other automakers, argue that it creates an unnecessary reporting burden. However, NHTSA maintains the data is crucial for spotting safety risks in advanced driver-assistance technologies.
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The NHTSA rule was introduced in 2021 and requires automakers to report crashes involving driver-assistance or autonomous systems engaged within 30 seconds of impact. The data has helped uncover crash patterns and issue driving recalls. While Tesla believes the rule unfairly portrays it as having more crashes due to its superior real-time reporting, NHTSA notes that comparisons between automakers are unreliable since reporting methods vary widely.
Nevertheless, Tesla’s executives have reportedly discussed pushing for the rule’s removal but determined it would require a change in administration. In addition, Musk has criticized inconsistent state regulations for autonomous vehicles and favors federal oversight instead. With Trump’s election win, Musk’s potential influence as a government-efficiency advisor could lead to regulatory shifts that benefit Tesla, including looser rules for autonomous vehicle development.
More Trouble with the SEC
It is no secret that Musk has had issues with regulators in the past. In addition to NHTSA, he has clashed with the SEC, and it seems it has a new problem with Musk. In fact, he revealed that the SEC issued a “settlement demand” related to his Twitter stock dealings and shared a letter from his attorney, Alex Spiro, accusing the SEC of pressuring Musk to settle within 48 hours or face charges. Spiro’s letter also accused the SEC of harassment and questioned whether the White House influenced the agency’s actions.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 67% rally in its share price over the past year, the average Tesla price target of $267.79 per share implies 37.3% downside risk.
