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Tesla's ‘Full Self-Driving' software under investigation for traffic safety violations

1. NHTSA opens investigation into Tesla's Full Self-Driving tech. 2. Over 50 violation reports linked to FSD software; four resulted in injuries. 3. Previous NHTSA investigations focused on Tesla's Autopilot and FSD issues. 4. Investigation coincides with Tesla's new FSD software release. 5. NHTSA's findings may lead to recall actions in the coming months.

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FAQ

Why Bearish?

Investigations into safety issues, particularly concerning FSD, can tarnish Tesla's image, impacting sales. Previous incidents have led to significant volatility in TSLA's stock price.

How important is it?

The article discusses an impactful investigation that could affect Tesla's future operations and consumer trust. Given the scrutiny surrounding FSD, the market's reaction could be significant, especially if a recall is required.

Why Short Term?

The ongoing investigation is likely to yield results within eight months, directly affecting TSLA's market sentiment. Past investigations have led to immediate market reactions.

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