What is the story about?
Federal auto regulators have escalated a probe of Tesla after several of its cars crashed while using its self-driving feature, just as CEO Elon Musk prepares
to roll out a new model with no steering wheel or pedals. The National Highway Traffic Safety Administration stated in a memo dated March 18 that it is examining nine crashes where the self-driving software failed to quickly alert drivers to take control in fog and other poor conditions due to the vehicle's cameras not detecting road hazards.
The NHTSA memo indicates that a regulatory investigation that began in 2024 over poor visibility crashes could lead to enforcement action, potentially including a recall of 3.2 million Tesla vehicles.Tesla's stock fell 3.2% to $380.30 as the increased regulatory scrutiny coincides with the company's efforts to convince investors that its future lies more in self-driving software than in vehicle sales, which have declined.
Musk has indicated plans to transform millions of Tesla cars already on the road into taxis that owners can rent out when not in use.
As part of this transition, Musk announced that Tesla will launch its robotaxi service without a driver in several U.S. cities this year and will begin production of its no-wheel-no-pedal Cybercab for sale next month.
Tesla did not immediately respond to requests for comment regarding the ongoing investigation.
Unlike other autonomous vehicles, which often utilize light radar or lidar, Tesla vehicles depend solely on cameras to identify road issues. Musk has dismissed the use of lidar as unnecessary.
The NHTSA's investigation into crashes occurring under conditions such as sun glare, dust, or heavy fog has now escalated to an 'engineering analysis,' indicating a more serious level of scrutiny.
Tesla previously labeled its driver assistance software as Full Self-Driving (FSD), a term that experts and regulators have criticized as misleading, given that drivers must remain vigilant and ready to take control at any moment. The company has since rebranded the feature as Full Self-Driving (Supervised).
Of the nine crashes currently under review, Tesla has informed regulators that three would not have occurred had the vehicles received new over-the-air FSD updates.
The company faces several other regulatory probes, including investigations into FSD-equipped cars running red lights and issues with door handles that allegedly failed during crashes, trapping passengers inside.
