Interesting news for electric vehicle giant Tesla (TSLA), especially for people who enjoy the Full Self-Driving (FSD) feature, but run afoul of its various rules. Changes to the so-called “doghouse policy” have hit, and it makes the feature just a little more tolerant of mistakes. Tesla investors were not exactly pleased, though, and shares ticked down fractionally in Thursday afternoon’s trading.
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The “doghouse period,” as some call it, refers to the period in which Tesla deactivates its FSD functions after a driver engages in distracted driving. Normally, a driver is allowed five infractions when there is a cabin camera involved, and three when there is not. Those who go a week without any strikes get a strike forgiven, so the system did have some room for error.
Now, the period for forgiveness has been expanded, with two strikes forgiven per week, one every 3.5 days. Of course, drivers cannot get any strikes in that period to get the forgiveness, but those who keep their noses clean get access to clean slates much faster. Yet some wonder why such a change was called for in the first place, as Tesla has been working frantically to achieve full autonomy. With such a feature, the doghouse period will no longer be necessary.
Accident-Prone Robotaxi?
New reports are coming out about Tesla’s tenure in the robotaxi front in Austin, and the early news is not encouraging. Reports suggest that Tesla is “…attempting to conceal the details of three separate accidents involving its Robotaxi service in Austin….” Current National Highway Traffic Safety Administration (NHTSA) rules—Standing General Order 2021-01 in particular—require automakers to report crashes involving autonomous vehicles within five days.
Tesla apparently recently reported three of these that happened back in July. Two of the incidents were described as “Property Damage. No Injured Reported.” and one was described as “Minor W/O Hospitalization.” This might sound substantial, but Tesla reportedly has just 12 vehicles in its Austin robotaxi fleet. Oddly, Tesla is also reportedly “…redacting all the narrative for its crash reporting to NHTSA…” which could put it in a bad position later on.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 13 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 74.59% rally in its share price over the past year, the average TSLA price target of $314 per share implies 26.14% downside risk.
