Tesla FSD Faces Federal Probe After Multiple Incidents

TLDRs;

• NHTSA investigates Tesla FSD after over 50 traffic safety incidents reported nationwide.
• Tesla stock dipped as regulators probe accidents involving Full Self-Driving technology.
• Elon Musk’s driverless taxi plans face potential delays amid federal scrutiny.
• Tesla argues drivers must remain alert, but regulators claim warnings were insufficient.

U.S. transportation safety authorities have opened a formal investigation into Tesla’s Full Self-Driving (FSD) technology following multiple reports of traffic violations and accidents.

The National Highway Traffic Safety Administration (NHTSA) revealed that it is reviewing 58 incidents where Tesla vehicles reportedly ran red lights, veered into incorrect lanes, or caused crashes while operating in FSD mode.

The probe affects nearly 2.9 million vehicles and adds to a growing list of federal inquiries into Tesla’s autonomous driving technologies. This latest scrutiny comes amid Elon Musk’s ambitious vision to transform millions of Tesla cars into fully driverless vehicles through over-the-air software updates.

Multiple Incidents Raise Safety Concerns

According to NHTSA filings, several of the reported incidents led to injuries, prompting heightened concern about the safety of Tesla’s driver-assistance systems. Drivers involved in accidents reportedly indicated that the FSD system did not provide adequate warnings about unexpected behaviors, despite Tesla’s repeated claims that motorists must remain attentive behind the wheel.

While Tesla maintains that FSD is only Level 2 driver-assistance software, which requires active human supervision, regulators argue that the technology’s real-world operation may be misleading to users, creating significant safety risks.

Musk’s Driverless Ambitions Face Delays

Elon Musk has long touted Tesla’s future in autonomous mobility, including plans to launch hundreds of thousands of driverless taxis in major U.S. cities by next year. However, federal investigations and ongoing lawsuits may hinder the rollout of these initiatives.

Earlier this year, a Miami jury ruled Tesla partially liable for a deadly 2019 crash involving its Autopilot system, a different driver-assist feature, resulting in a $240 million damages award.

Alongside this, regulators are examining Tesla’s delayed reporting of crashes and minor collisions related to other automated features, including the “summon” function.

Market Pressure and Competition Intensify

Tesla’s stock experienced a temporary decline of nearly 3% following the news of the FSD probe, reflecting investor concerns over regulatory scrutiny and potential legal exposure.

At the same time, sales pressures continue to mount. Boycotts over Musk’s political affiliations and competition from lower-cost electric vehicle manufacturers, particularly China’s BYD, have affected Tesla’s market share.

In response, Tesla announced two more affordable versions of the Model 3 and Model Y, aiming to attract cost-conscious consumers. Despite this, analysts note that fully realizing FSD’s commercial potential is crucial for Tesla to maintain its long-term growth, particularly as driverless technology remains central to Musk’s vision for the company.

Conclusion

The NHTSA investigation into Tesla’s Full Self-Driving software underscores the challenges facing autonomous vehicle technology.

As regulators scrutinize over 50 reported incidents, the future of Tesla’s FSD ambitions, and Musk’s driverless taxi plans, faces significant uncertainty. While the company emphasizes driver responsibility, safety concerns and federal oversight may delay the widespread adoption of its autonomous features.

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