Tesla Motors Inc (NASDAQ:TSLA) Could Be Forced To Dump ‘Autopilot’ In Sales Pitches

Tesla Motors Inc (NASDAQ:TSLA) is under immense pressure in Europe over the use of the name ‘Autopilot’ in advertisements as regulators argue the same could encourage drivers to over rely on the system. Days after German regulators raised concerns that the name could lead to misinterpretation among drivers, the European Agency that vetted the system has also raised similar concerns.

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‘Autopilot’ Stand off

The Dutch Road Traffic Service is now on the fence on what action to take, German Transport ministry having asked the EV giant to stop using the ‘Autopilot’ name in advertisements.

“It can be confirmed that a letter to Tesla exists with the request to no longer use the misleading term Autopilot for the driver assistance system of the car,” said the ministry in a statement.

Speculation is also rife that the Dutch Road Traffic Service has asked the EV giant to stop using the name.

A point of concerns to the regulators is that a number of people are misinterpreting that the ‘name’ suggests driver’s attention is not needed when activated. The ministry has already written to Tesla car owners in the country warning them that their vehicles cannot be operated without their attention.

Tesla Defense

Tesla reacting to the claims has insisted there is nothing wrong with using the name ‘Autopilot given that it has been used in the aerospace industry for years without any misinterpretation. However, the same is not expected to calm the ever-growing regulatory pressure in the wake of a fatal accident that involved a driver who had activated the autonomous feature.

In a bid to curtail the wave of criticism, CEO, Elon Musk, has unveiled a number of changes that he says will make the Autopilot system more effective in preventing fatal accidents. Some of the new changes involve the system relying on a radar system rather than cameras for navigation, staying in lanes and for braking.

Tesla stock continues to edge lower in the market having shed 1.30% in market value on Monday to close at $193.96 a share.

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