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Tesla says lawsuits could delay SolarCity deal

Tesla uses the term “beta test” for drivers now deploying the latest version of the Autopilot system, which was introduced in October 2015. Now the two sides are dissing each other with wildly different takes on what caused the split.

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With Mobileye chairman Amnon Shashua already having said earlier that Tesla was “pushing the envelope “with its Autopilot system, Mobileye said on Friday that it had “expressed safety concerns regarding the use of Autopilot hands-free” to Tesla’s CEO Elon Musk”.

“Perfect safety is an impossible goal”, Musk said during a press conference on the Autopilot upgrade. Autopilot is “not created to cover all possible crash situations in a safe manner”, he said.

Tesla CA-based is expecting the deal with SolarCity to be completed by the year-end, citing that the electric auto manufacturer aimed at transforming the vehicle company into a clean energy firm with the SolarCity merger. When Mobileye found out, it “attempted to force Tesla to discontinue this development, pay them more, and use their products in future hardware”, the spokeswoman said.

Mobileye described Tesla’s Autopilot feature as flawed which the company countered.

The US National Transportation Safety Board (NTSB) and the National Highway Traffic Safety Administration (NHTSA) are investigating the May death of a 40-year-old Tesla driver in Florida. Now, both companies have fired a shot at one another, essentially blaming each other for their falling out. “Yes, but those probably shouldn’t be discussed publicly”. The Tesla driver-assist feature was engaged during the crash of the Tesla Model S sedan.

“No matter how you spin it, (Autopilot) is not designed for that”. Autopilot now gives a driver text and audio warnings to keep their hands on the steering wheel every time the system is engaged, something the new system will allegedly take up a notch. Elon Musk, Tesla’s CEO, owns 20% stakes in both companies and his cousins Lyndon Rive and Peter Rive are SolarCity’s CEO and chief technical officer, respectively.

At first, Tesla pinned the blame for the crash on the car’s camera not being able to tell the difference between a white trailer and a bright sky – in effect shifting the blame from its own systems to those provided by a third party. Later, in a face-to-face meeting, Musk said Autopilot would be “hands-on”, Mobileye said.

Brown had previously praised the system and likely believed the cameras, sensors and radar would detect objects in the road and activate automatic braking in the auto.

Tesla posted its thirteenth consecutive quarterly reverse in the quarter ended 30 June, shedding US$293.2 million in the period, equivalent to US$2.09 per share. The comments could be seen as a warning to be careful, Selesky said.

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The suit is believed to be the first following a fatal crash in which Autopilot use is suspected or alleged, with the victim’s family reportedly expecting to rely on expert testimony to establish that the vehicle was operating on Autopilot.

Tesla revealed shareholders have sued to block its Solar City acquisition