Tesla Inc (NASDAQ:TSLA) Facing Lawsuit Over Its Autopilot Self-driving System


Tesla Inc (NASDAQ:TSLA) announced that it is updating the Autopilot system.

The flawed system

This announcement comes after a Tesla owner was killed while the system was still in operation. The Autopilot partly self driving system has functional errors which cause the vehicles to steer erratically when they are engaged. The company is yet to deliver on its promise to enhance safety improvements as expected.

The company faces lawsuits

Tesla is facing charges in a U.S. District Court. On behalf of three Tesla owners, the lawsuit alleges, “Autopilot capabilities that consumers paid $5,000 extra to obtain are anything but ‘safer’ and ‘stress free’.”

According to the suit, the Autopilot as well as other safety systems have not achieved their purpose. Owners were promised that systems such as automatic braking and the collision avoidance were to be flashed to the cars through over the air updates by December 2016. The updates did not actualize as earlier stated.

Instead owners received a ‘dangerous defective’ Traffic Aware Cruise Control System and a limited front collision alert which no automatic braking function unlike in rival cars which cost much less in most cases.

Steve Berman, Hagens Berman managing partner stated that Tesla has endangered many lives and induced than to pay highly for a product that has not been effectively designed.

Tesla denied the allegations claiming that the lawsuit is ridiculously based on factual errors and it is a disingenuous way to try and secure the attorney’s fees in the name of legitimate legal action.

Support from the authorities

Tesla is one of the auto manufacturers that are involved in the development of self driven cars. The company has enjoyed great support from the government stating that the self driven cars are very critical in reducing the number of accidents on the highways as well as related deaths.

Elon Musk the CEO of Tesla reviewed the Autopilot by Tesla as one of the most developed. This is because it relies on a network of sensors as well as radar which assist in keeping the car on the lane, speeding up with traffic and braking as well as ability to change lanes all on it own.

Tesla stock closed in at $305.52 on Wednesday after a rise $5.27 or 1.76%.

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