Trouble for Tesla! Autopilot feature runs into German regulator

Tesla faces a review in Germany over an , as regulatory scrutiny intensifies into the carmaker’s driver-assistance technology.

Increased regulatory scrutiny is posing a risk to Tesla’s commercialization of automated-vehicle technology. (REUTERS)

Tesla Autopilot feature faces a review in Germany as scrutiny intensifies into the company's driver-assistance technology. Germany's federal motor vehicle office KBA is investigating Tesla's automated lane-change function and whether it's approved for use in Europe, Bild am Sonntag newspaper reported on Sunday, citing a spokesman for the agency.

The KBA is also in contact with the Netherlands' vehicle agency, which is responsible for approving Tesla cars in Europe, according to Bild. 

Increased regulatory scrutiny is posing a risk to Tesla's commercialization of automated-vehicle technology. Last week, the U.S. National Highway Traffic Safety Administration opened its second probe into a possible Autopilot defect. The electric-car maker has drawn criticism over issues including how it branded the systems and whether it does enough to safeguard against inattentiveness and misuse.

The latest development in Germany adds to the regulatory hurdles Tesla is facing in the country. Progress at its first European factory, in a site near Berlin, has been slower than expected amid a backlash from environmental groups concerned about water use and wildlife. 

Tesla and KBA weren't immediately available for comment outside normal business hours.

US securities agency denies claims it's harassing Elon Musk

Detroit, Feb 19 (AP) US securities regulators responded to allegations that they are harassing Elon Musk, writing in a letter that they're following a judge's instructions in trying to speak with the Tesla CEO's lawyers about his posts on Twitter.

In a letter dated Friday, Steven Buchholz of the Securities and Exchange Commission's San Francisco Office wrote that the judge handling a securities case against Musk encouraged both sides to confer before raising issues with the court.

He also denied that the agency had issued subpoenas in the Musk Twitter case and that the SEC is taking too long to distribute a USD 40 million penalty from Musk and Tesla that is supposed to go to Tesla shareholders.

Early Thursday, lawyers for Musk sent a letter to US District Judge Alison Nathan in Manhattan accusing the SEC of harassing him with investigations and subpoenas over his Twitter posts.

In 2018, Musk and Tesla each agreed to pay USD 20 million in civil fines over Musk's tweets about having the money to take the company private at USD 420 per share.

The funding was far from secured and the company remains public. The settlement specified governance changes, including Musk's ouster as board chairman, as well as approval of Musk's tweets.

The letter from attorney Alex Spiro accuses the SEC of trying to “muzzle” Musk, largely because he's an outspoken government critic.

“The SEC's outsized efforts seem calculated to chill his exercise of First Amendment rights rather than to enforce generally applicable laws in an even-handed fashion,” the letter stated.

Spiro also questioned why the SEC hasn't distributed the USD 40 million in fines to Tesla shareholders more than three years after the settlement.

Buccholz wrote that during a 2019 contempt hearing, the judge encouraged the parties to make good faith efforts to meet before raising any compliance issues with the court.

“The Commission's enforcement staff have, accordingly, sought to meet and confer with counsel for Tesla and Mr. Musk to address any concerns regarding Tesla and Mr. Musk's compliance with the court's amended judgments,” Buchholz wrote.

The SEC has followed court orders in distributing the settlement money and that process is nearing completion, his letter said.