Tesla's innovative autopilot and the NHTSA

Marlene M. Reed-Hislop

Chapter 2 in Cases on Corporate Entrepreneurship in North America, 2025, pp 12-20 from Edward Elgar Publishing

Abstract: This case relates the story of the founding of Tesla automobile company by two engineers who saw great promise in electric vehicles that would improve the driving experience. Part of the description of the development of the company is the fact that the company was a first mover in the industry, with all of the advantages and disadvantages this involves. In addition, the company was taken public by Elon Musk, the largest investor, and the other managers. However, later they decided to make the company private by buying back all of the outstanding shares of stock. When this decision was canceled, the Securities and Exchange Commission sued Musk for a tweet he made indicating they were taking the company private and then remaining public. From the beginning, the Autopilot or Full Self-Driving operation had received bad press, much of it because of the accidents reported with the Autopilot that resulted in a number of deaths and severe injuries. On public demand, the National Highway Traffic Safety Administration became involved and opened an investigation into the relationship between the Tesla Autopilot and the outcomes of accidents regarding this automobile. The future of Tesla and its acceptability by the public depended upon its ability to dismiss the government's and the public's concerns over this option on the Tesla.

Keywords: Tesla; Electric vehicles; Elon Musk; Self-driving vehicles (search for similar items in EconPapers)
Date: 2025
ISBN: 9781803929224
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