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US opens new Tesla probe focused on remote driving technology

Tesla's "summons" feature is under investigation following reports of crashes. Getty Images

U.S. regulators have opened an investigation into 2.6 million Teslas after reports of crashes involving the use of company technology that allows drivers to remotely command their vehicle to return to them, or move to another location, using a phone app.

The National Highway Traffic Safety Administration also said Tuesday that Tesla did not report any of the accidents. Tesla is under order to report crashes on “publicly accessible roads” involving vehicles being operated through its autonomous driving technology.

The new investigation follows another probe launched in October looking into the company's “Full Self-Driving” system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian. That investigation covers 2.4 million Teslas from the 2016 through 2024 model years.

Tesla did not respond to a request for comment from The Associated Press on Tuesday.

One driver filed a complaint after a crash while using Tesla's “Actually Smart Summon” technology and NHTSA is looking into another three similar incidents based on media reports, the NHTSA said. The agency is looking into 12 total incidents reported by users of the technology.

Each of the vehicles failed to detect posts and other parked vehicles, according to the NHTSA.

Regulators say the vehicles struck objects because the users had "too little reaction time to avoid a crash, either with the available line of sight or releasing the phone app button, which stops the vehicle’s movement.”

Shares of Tesla Inc., based in Austin, Texas, slid more than 4% in late afternoon trading Tuesday.

Musk has complained that U.S. regulations are too onerous and are holding back the development of self-driving cars. Ethics experts are worried that once President-elect Donald Trump takes office, Musk will push him to ease oversight of Tesla, which just suffered its first decline in annual sales in more than a decade.

Musk donated an estimated $250 million to Trump's presidential campaign and is a frequent guest at Trump's Mar-a-Lago, vetting cabinet nominees and meeting with foreign heads of state. Trump has put Musk in charge of an advisory group, the Department of Government Efficiency, that will recommend where to cut government expenses and staff at federal agencies and reduce regulation.

The NHTSA said Tuesday it will look into the top speed that Teslas can reach when users deploy its “summons” technology, as well as restrictions on public roads and line of sights requirements. It also said it expects to check for any “connectivity delays" with the app that could result in increased stopping distance.

Tesla’s Model 3 owner’s manual says that its “summons” feature is designed for use only in parking lots and driveways on private property and is disabled on public roads.

The new probe covers 2016-2025 Model S and X vehicles, 2017-2025 Model 3, 2020-2025 Model Y equipped with Tesla's Full Self-Driving driver assistance system.

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A View From HETI

Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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