Elon Musk‘s overarching message is essentially: I create superior products, so I can make any claims I want.
During a recent appearance at the New York Times DealBook Summit, Musk asserted, “Whether you hate me, like me, or are indifferent, do you want the best car or not the best car?”
The issue arises because Musk’s bold statements extend beyond his social media and rare media interviews; they find their way into the official marketing materials of Tesla, his flagship company. This has led to Tesla recalling nearly all its 2 million cars in the US due to the investigation by US safety regulators.
Tesla’s “Autopilot” feature, despite its name, doesn’t enable the car to drive itself. Yet, Tesla has marketed it as such, causing safety concerns and leading to investigations.
The National Highway Traffic Safety Administration (NHTSA) is currently conducting a two-year investigation into nearly 1,000 crashes involving Teslas, with concerns that the Autopilot system can give a false sense of security.
Tesla’s Autopilot and Full Self Driving (FSD) systems, both driver-assist features, are crucial to the company’s business model. Despite their limitations, Tesla’s stock has soared, making it the most valuable automaker globally.
Investors, driven by the hype, have embraced Tesla’s stock, with the company’s value increasing over 110% in the current year alone. Elon Musk’s positive statements about the Full Self-Driving system’s potential have further fueled this optimism.
However, the reality falls short of the hype, with documented issues like unexpected swerving and ignoring traffic signs. Tesla’s manuals explicitly state that drivers must remain alert while using these features.
“Tesla drivers have logged more than one billion miles with Autopilot engaged, and our data shows that, when used properly by an attentive driver who is prepared to take control at all times, drivers supported by Autopilot are safer than those operating without assistance,” the company said in a2019 statementabout the lawsuit.
Tesla’s Autopilot system has faced legal challenges, including a Florida judge finding “reasonable evidence” that Musk and other executives promoted Autopilot despite knowing its defects. The company was, however, found not liable in two California cases related to alleged defects.
Musk’s exaggerations about Tesla’s self-driving capabilities pose significant risks given the unregulated nature of driver-assist technology. The reliance on an honor system for drivers creates challenges, emphasizing the need for accurate marketing and responsible statements from Tesla and its CEO.
