Industry implications of the Tesla crash

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Autopilot was launched for the Model S as an over-the-air software update in October 2015. Autopilot is not a 100% autonomous driving mode. Its purpose is to take on more responsibility from the driver, not to replace the driver. Shortly after Autopilot launched in 2015 industry commentators noted the technology could be used incorrectly.

Before the accident, Autopilot recorded 209 million kms without a fatality, compared with the average rate of a fatality in the United States for every 151 million kilometres. The fallout of the fatality is bound to impact Tesla’s reputation. In the coming months, as the investigation unfolds, Tesla's technology and taking this technology to market will come under review.

The crash will also have wider industry implications:

1. Technology and automotive companies involved in autonomous driving development will feel the pressure as greater oversight and scrutiny of their projects, products and lobby efforts comes from within the industry and regulators.
2. Public perception of assistive driving and autonomous driving will be tested.
3. While this crash is unlikely to have any significance on Tesla sales, drivers may be hesitant or wary of rushing to use such technology without fully understanding the mechanics of their operation.

The next few weeks and months will be some of the most interesting in the industry as news and the investigation of the crash begins to gain momentum. Until such time as definite findings are made public, Tesla will have to carefully manage the reputational fallout with care.