Tesla Stock Draws Investor Interest As European Regulator Reportedly Terms Door Safety A Priority

Dutch authority RDW reportedly said on Thursday that regulators will strengthen rules to mitigate concerns surrounding Tesla Inc.’s (TSLA) door handle design.

According to a Bloomberg report on Thursday, regulators are seeking to ensure that vehicle occupants can safely exit the vehicle in the event of a crash and be rescued by first responders. The RDW conducts the inspection and approval of Tesla’s vehicles for sales in the European Union.

“Doors must always be operable — from the inside by occupants and from the outside by emergency responders — even in the event of a power failure,” an RDW spokesperson told Bloomberg. “Where current regulations fall short due to the introduction of new door concepts, this issue is being addressed within the respective committees.”

Last month, U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA) opened a probe into Tesla’s Model Y vehicles over concerns that the electronic door handles may become inoperative due to low battery voltage in the vehicle.

The U.S. regulator then stated that its Office of Defects Investigation (ODI) is aware of nine incidents where customers were unable to open doors on model year 2021 Model Y vehicles, and subsequently opened a probe into an estimated 174,290 vehicles to assess the scope and severity of the condition, including associated risks. Tesla is reportedly working to integrate manual and electric door releases, making them more intuitive for occupants.

TSLA shares traded nearly 1% higher on Thursday at the time of writing. On Stocktwits, retail sentiment around TSLA stayed within the ‘bearish’ territory while message volume stayed at ‘low’ levels.

According to Bloomberg, China has also proposed regulations requiring all passenger vehicles to feature mechanical door releases accessible from both inside and outside cars.

TSLA stock is up by 8% this year and has nearly doubled over the past 12 months. 

Read also: CRML Stock Jumps Following $50 Million PIPE Deal To Develop Tanbreez Rare Earth Project

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on