Tesla Motors Inc (NASDAQ:TSLA) Faces Investigation Over Suspension Failure

Tesla Motors Inc (NASDAQ:TSLA) Faces Investigation Over Suspension Failure

Tesla Motors Inc (NASDAQ:TSLA) is facing investigations from the US National Highway Safety Administration (NHTSA) over the possibility of faulty suspensions in the Tesla Model S.

The Federal regulator stated that the company’s clients may have been requested to sign a non-disclosure agreement. This follows the announcement of possible flaws that could lead to damage in the suspension control arm which when broken could cause the driver to lose control of the vehicle. NHTSA spokesman Bryan Thomas stated that the regulator is aware of the potential suspension problem on the Tesla Model S, and more information is being sought from owners of the luxury sedan.

Thomas also noted that the NHTSA upon receiving the information about Tesla warned the electric vehicle maker not to force customers not to contact the safety regulator concerning the matter. Tesla’s representative has responded to the message by stating that the firm did not intend to discourage customers from talking to the NHTSA regarding the matter. Tesla is yet to respond to requests for comments.

Mark Rosekind, the administrator of NHTSA reported that the firm is currently collecting data regarding the Tesla Model S. He further pointed out that his agency is tasked with finding out whether or not the non-disclosure agreements might have prevented the clients from forwarding the complaints to authorities. The NHTSA is currently seeking more information from the company. Rosekind stated that it has not yet been established how many such non-disclosure agreements the firm has pushed to other customers.

Some of the customers who brought their complaints forward were required to sign non-disclosure agreements before the company could repair their vehicles. Tesla previously called back 59,000 Model S units in the US in November because their seat belts were not connected properly to the pretensioner. This means passengers were not well protected in the event of a car accident. The suspension fault case comes in the wake of the company’s new Model 3 hitting the market.