US auto safety regulators have launched a preliminary investigation into Tesla vehicles following reports of exterior door handle failures that can trap occupants, including children, especially after low-voltage battery replacements.

The defect appears linked to insufficient power from the electronic door lock system, which often occurs after low-voltage battery replacements, yet drivers rarely receive warnings about battery issues.

Safety advocates and regulators argue that the minimal aerodynamic benefits of flush door handles do not outweigh the safety risks, such as handle failures and potential entrapment, prompting calls for bans or redesigns.

Chinese regulators are considering a ban on fully retractable door handles, which could influence global automakers, including Tesla, to shift toward mechanically redundant safety systems.

The proposed ban aims to target fully retractable handles, but semi-concealed or mechanically redundant mechanisms might still be permitted, potentially increasing production costs for manufacturers.

Tesla faces ongoing scrutiny from the NHTSA, which is investigating its safety features, including door handle failures, Autopilot crash reports, and the effectiveness of its driver-assistance software.

This investigation adds to a series of probes into Tesla’s safety systems, including its Full Self-Driving software and recent crash reports involving Autopilot and remote parking features.

Tesla CEO Elon Musk defends the company's innovations, emphasizing their role in sustainability, but acknowledges the need to balance innovation with regulatory compliance amid ongoing safety investigations.

A regulatory shift in China, a major Tesla market, could set a precedent influencing global standards, encouraging automakers to prioritize safety and mechanical redundancies over aesthetic design.

Tesla is expanding its Robotaxi service in the US, with recent testing involving vehicles equipped with LiDAR in Tempe, Arizona, marking progress toward broader deployment.

Tesla is experiencing declining EV sales, with deliveries expected to fall for the second consecutive year, amid increased competition and shifting consumer preferences.

Tesla has introduced new safety features in Europe, such as 'Child Left Alone Detection,' to prevent heatstroke deaths, using interior sensors and alerts to notify owners if a child is left unattended in the vehicle.

Wall Street's current consensus on Tesla stock is a hold, with a target price of around $310, implying a potential downside despite recent gains, reflecting cautious investor sentiment amid safety concerns and market challenges.