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The federal agency in charge of traffic safety, currently investigating the impact of Tesla’s self-driving technology on a pedestrian fatality, is set to reduce its workforce by a “modest” number, as confirmed by a spokesperson late Friday.

Details regarding whether any of the terminated employees were associated with Tesla investigations were not disclosed by the agency. Tesla’s CEO, Elon Musk, is heading the Department of Government Efficiency, a body initiated by President Trump.

This department has been pushing for job cuts across various federal agencies to overhaul the federal bureaucracy. Musk continues to manage Tesla while dedicating significant time to his duties in Washington.

According to agency records, the National Highway Traffic Safety Administration (NHTSA) is conducting three ongoing investigations into Tesla, including one that assesses whether the company’s autonomous driving software is susceptible to failures under poor visibility conditions.

Reports from The Washington Post earlier indicated that the NHTSA, which has a workforce of less than 1,000 employees, is proceeding with layoffs. Following these reductions, the agency stated that it still has a larger workforce than it did at the start of the Biden administration.

“The last administration expanded NHTSA’s staff by an impressive 30 percent,” the agency remarked in its statement.

“We have preserved positions that are essential for our mission to save lives, prevent injuries, and minimize economic losses from traffic incidents,” the agency added. “Our commitment to enforce regulations on all vehicle and equipment manufacturers remains steadfast.”

Tesla has not provided a statement in response to these developments.

One of the ongoing investigations into Tesla revolves around four incidents linked to their supervised full self-driving technology, which allows vehicles to steer, brake, and navigate under specific conditions. One of these incidents resulted in a pedestrian fatality, while another caused injuries to an individual.

Tesla’s autonomous driving system utilizes cameras to monitor surroundings, differentiating it from competitors such as Waymo, a Google-affiliated company that employs lasers and radar for object detection.

The NHTSA is scrutinizing whether Tesla’s technology encounters challenges when visibility is compromised due to factors like sunlight glare, fog, or dust.

Musk has consistently maintained that Tesla’s self-driving capabilities surpass human driving in safety.

This technology plays a pivotal role in Tesla’s future growth and stock valuation. After witnessing a 1 percent drop in sales last year, despite a 25 percent rise in the global electric vehicle market, Musk is redirecting the company’s focus toward autonomous driving solutions and a forthcoming self-driving taxi service.

Last month, Musk expressed to investors that this technology is key to establishing Tesla as the most valuable company globally.

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