Tesla (TSLA) Autopilot Debate Fires Up With Consumer Reports' MacCleery on CNBC

CNBC reporters, Consumer Report's Laura MacCleery hotly debated whether Tesla (TSLA) should change its autopilot function after it was connected to a fatal crash in Florida.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) --Tesla Motors (TSLA) - Get Report  is being called on by Consumer Reports to disable and change the name of its autopilot system in the wake of recent car accidents, one fatal, that may be linked to the automaker's autonomous driving function, CNBC's Brian Sullivan reported on "Power Lunch" Thursday.

Consumer Reports VP of Consumer Policy and Mobilization, Laura MacCleery, defended the magazine's review on "Power Lunch" today. She believes that the auto-steer must be disabled "until [Tesla] can bring their vehicle in line with all the other manufacturers that have such a feature on the road, by requiring drivers to keep their hands on the wheel."

As "tragic as it is," it was one death (in Florida), versus the some 30,000 annual vehicular fatalities, Sullivan countered. The accident is under investigation and there are few details about its cause.

"Could the autopilot function be diffused?" CNBC's Tyler Mathisen asked.

"Theoretically it could but I'll tell you what, after one incident, and we don't know that there were other incidents but if there's just one incident here, I don't think that Tesla will turn it off or rename it. There is an element here of: you should be aware of the technology in your vehicle," CNBC's Phil LeBeau said.

"This is not a self-driving car" but the name "autopilot" suggests that it is, MacCleery argued.

"Who said it was a self-driving car?" LeBeau fired back.

CNBC's Melissa Lee agreed with LeBeau that the name does not insinuate that drivers can stop paying attention. She also mentioned that the consumer does not have to enable the autopilot function at all.

Shares of Tesla are lower by 0.26% to $221.95 this afternoon.

Separately, TheStreet Ratings rated Tesla as a "sell" with a score of D+.

This is driven by multiple weaknesses, which can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TSLA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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