This investigation is notable as it is the first since President Donald Trump returned to office, potentially impacting Tesla's autonomous vehicle strategy, which the company considers a key growth area.

Industry critics question Tesla's claims of progress in autonomous driving, citing safety concerns and comparing its safety record unfavorably with companies like Waymo, which report lower crash rates.

Tesla's stock has shown resilience despite safety concerns and ongoing investigations, though it experienced a slight decline following the announcement, amid broader market reactions.

Tesla is currently under investigation by the National Highway Traffic Safety Administration (NHTSA) for allegedly delaying crash reports involving its driver assistance systems, including Autopilot and Full Self-Driving, which are classified as Level 2 and require driver attention at all times.

Tesla's Autopilot and Full Self-Driving systems are classified as Level 2, requiring constant driver attention, contrasting with competitors like Waymo, which operate Level 4 autonomous vehicles capable of full driverless operation.

Tesla operates a robotaxi pilot program and markets driver-assistance features using the same hardware, which can cause consumer confusion about the system's capabilities and level of autonomy.

The investigation highlights the critical need for timely and accurate crash reporting in the autonomous vehicle industry, especially as regulatory standards evolve.

Despite declining sales and profits influenced by political controversies and leadership issues, investor optimism remains high due to Tesla's ambitions in autonomous ride-hailing markets, supported by enthusiasm for its robotaxi initiatives.

The investigation underscores the importance of strict data management and adherence to regulatory crash reporting requirements, especially given Tesla's history of delayed reports and previous legal liabilities.

Tesla attributed these delays to issues in its data collection system, which it claims have now been resolved, but the investigation highlights ongoing concerns about transparency and safety.

Tesla's founder Elon Musk has a history of political involvement, having served as an advisor to former President Trump, and the company has faced recent profit declines amid increasing competition and political backlash.

Analysts from Goldman Sachs see Tesla's robotaxi plans as promising for capturing a large market, though uncertainties remain regarding future revenue and vehicle performance in ride-sharing.