On Monday, Uber announced that it would be suspending the testing of all of its self-driving vehicles after a pedestrian was struck and killed by one of the company's driver-less cars in Phoenix, Arizona. While there have been accidents before that involved Tesla Inc's (NASDAQ:TSLA) cars, this is the first time we've heard of a death caused by an autonomous vehicle.
After all, one of the biggest benefits of self-driving vehicles is that they should provide more safety on the roads since sensors and radars can help prevent accidents from happening. However, this will likely remind investors just how far away we are from when driver-less vehicles will become commonplace, while also underscoring the very serious risks that are involved.
The big question is whether this will lead to a big sell-off in self-driving stocks like Tesla and other companies. While this is not an issue directly related to the company, it may be enough to distract investors from the hype and excitement in the industry and focus instead on the negatives.
However, this could help remind self-driving companies of why safety has to be the top priority above all others. Driver-less vehicles will never sell if the public is not convinced of their safety, and that's why it's important for Uber to get to the bottom of just what happened in this case.
It's all too easy for investors to overreact in this situation and a big sell-off could be an opportunity to buy Tesla and other stocks at a reduced price if that does happen.
