“Tesla’s Plan for Government Takeover Exposed”
The Trump administration has yet to announce any measures that could benefit Tesla or Musk’s other businesses. However, dismantling federal investigations or abandoning safety initiatives would be a simpler task compared to their bold challenge of regulators and the bureaucracy. “Trump’s presidency, along with the close relationship between Trump and Musk, is likely to lead to a relaxation of the regulatory restrictions that have been holding back Tesla,” stated Daniel Ives, an experienced Wall Street analyst in the technology and automotive sectors. The federal government holds significant control over Tesla, allowing it to conduct investigations, enforce recalls, and mandate crash data reporting, among other powers. Nonetheless, the Trump administration could swiftly reduce the pressure on Tesla and Musk’s various enterprises. Several of Musk’s other ventures, including SpaceX and X, are under federal scrutiny. Tesla is currently under investigation by several federal agencies, such as the Justice Department, the Securities and Exchange Commission, and the National Labor Relations Board. The National Highway Traffic Safety Administration (NHTSA), a division of the Department of Transportation, wield the most influence over Tesla and the automobile industry as a whole. NHTSA establishes safety standards for vehicles entering the market and oversees defect investigations and recalls. The agency is currently investigating Tesla’s self-driving technology following numerous crashes involving the automated systems. Concerns have been raised by crash victims and legal experts about the potential lack of oversight if the federal government’s investigative and recall authority is curtailed. They worry that without proper accountability, dangerous incidents like the one that claimed the life of Naibel Benavides Leon, who was killed in a Tesla crash in Florida, may become more common. Benavides Leon’s family and others impacted by Tesla accidents emphasize the importance of thorough investigations and accountability when technology fails. Presidential actions and potential changes in regulations could have far-reaching consequences for Tesla and its stakeholders.
Tesla’s legal team did not respond to requests for comment in regards to the ongoing lawsuit. In a statement released by Tesla in December 2023, reference was made to a previous legal action initiated by the Benavides family against the driver responsible for the collision involving a college student. In his testimony, the driver admitted that despite utilizing Autopilot technology, he was fully cognizant of the fact that the ultimate responsibility for operating the vehicle safely rested with him.
Tesla further asserted that the driver’s actions, particularly his decision to maintain a speed of 60 mph by pressing the accelerator, effectively superseded the Autopilot system, which would have otherwise limited the speed to 45 mph on the rural road where the incident occurred. This claim is disputed by counsel representing the Benavides family.
In the wrongful death lawsuit brought against Tesla by Neima Benavides following her sister’s tragic passing, her attorney informed a Miami district judge that the lawsuit would likely have been dropped if not for the investigation conducted by the National Highway Traffic Safety Administration (NHTSA) that revealed defects in the Autopilot system.
During a court hearing in March, attorney Doug Eaton expressed, “All along we were hopeful that the NHTSA investigation would lead to what it ultimately did, which was the identification of a product defect resulting in a recall. Early on in the case, we had indicated that if NHTSA had not made such findings, we might have considered dropping the lawsuit. However, given the outcome of their investigation, we proceeded with the legal action.”
