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Tesla is not being investigated by German authorities

On July 8, 2016, a spokesman for the German Transport Ministry denied that the federal entity had an ongoing investigation against Tesla Motors. He said the authorities were only checking the situation between the Federal Office of Motor Vehicles (KBA) and the ministry itself. However, the KBA is investigating the auto-pilot feature included in the company’s cars. In this regard, a spokeswoman for the company said Tesla was completely cooperating with the officials.

Initial reports made by Der Spiegel, a famous German magazine, confirmed Tesla Motors had uploaded a new software into the default package without previous approval from the authorities. However, the Ministry debunked these rumors by announcing the office was not investigating the American organization.

On July 8, 2016, a spokesman for the German Transport Ministry denied that the federal entity had an ongoing investigation against Tesla Motors. Photo credit: Fabrice Coffrini / AFP /Getty Images

“We are clarifying the technical issues,” the ministry spokesman said. “At the moment, it is a normal gathering of information on the status quo between the Federal Office for Motor Vehicles (KBA) and the ministry.”

Elon Musk’s company has been in the eye of the hurricane ever since a fatal accident involving the auto-pilot feature in the United States. The incident has become a PR nightmare for the company because the collective media seems to be exploiting the fears of the regular citizens. As a matter of fact, the North American authorities are investigating the automated-driving feature, but it is just standard procedure. After every accident, an investigation is expected to know exactly what happened and find out if there is anything needing correction.

The pressure made by the media its taking its toll on the company

Recently, Fortune magazine wrote an article about Tesla Motors and its cars. The company’s management did not like what they saw in the publication and released an official statement addressing the situation. On July 6, Tesla said Fortune had twisted some information and consciously ignored many details to write an “incorrect article.”

The cars are not the only thing being questioned about the company. The financial strategy proposed by Musk is not falling on friendly ears. Both the public opinion and the investors are taking their turns at the bat-box to say what is wrong with the plan. They get extraordinarily judgmental with the Solar City purchase proposal, and they have their motives. Nor Tesla or Solar City have reported profits in a very long time which has the investors doubting the CEO’s financial plan.

In spite of all of these, the tech magnate has not changed his position. He said both companies would start reporting profits in the second half of 2016. In fact, he brought up the car company’s plan to the table on building a four-door sporty “roadster”. The North American company has managed to sell made its way into the European market, and whereas others are having problems, Tesla Motors could thrive.

The British automotive industry is one of the most dominants in the continent exporting 70% of the cars built. However, the scenario is very different after the “Brexit” referendum. Now, the U.K’s ability to satisfy the European’s car demand is uncertain which might leave a huge vacuum in the market. If Musk’s organization manages to stay clear with the European regulators, it could expand its presence in the market and start making a profit.

Source: Reuters

Categories: Technology
Hector Morales:
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