Auto-Pilot Accident A Recall Precursor? Driver Watching 'Harry Potter' Film?

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Tesla delivered 14,370 vehicles between April and June - its target was 17,000.

Despite the disappointing delivery figures, Tesla is now more eager to increase its production to around 2,200 cars per week in the third quarter and around 2,400 cars per week in the fourth quarter, ZeroHedge has learned. The feature was introduced on some Tesla vehicles previous year.

"Suppliers continue to suggest Tesla has had difficulty maintaining steady production of Model X", the report noted, "with some estimating "up time" is as low as 50 percent". Investors appear to dislike the all-stock bid as Tesla's shares dropped after the announcement.

US regulators are now looking into the autopilot function in Tesla's Model S cars, and this examination could lead to recalling vehicles if they are declared unsafe. Reports claim that the drivers hands need to be on the steering wheel at all times while the auto is on autopilot mode to ensure that he or she still has some control over the vehicle even though it is in its self-driving mode.

In May, Tesla founder and chief executive Elon Musk drew criticism for announcing plans to buy solar panel maker SolarCity, a separate company that he had founded and for which he serves as chairman. In the company's first quarter, it left 2,615 vehicles on trucks, and those deliveries spilled into the second quarter.

The company said last week a Model S driver died in May while using the car's autopilot system on a highway near Williston, Fla. "Following our standard practice", Tesla said in a statement issued last Thursday, it "immediately" informed the National Highway Traffic Safety Administration about the accident.

The company has been increasing its production as it prepares to meet the production deadline for Model 3, its mass market sedan, which was ambitiously brought forward by two years.

"Anytime there is a significant accident, Tesla receives a crash detection alert", the company said in an email to The Detroit News.