US opens probe into nearly 2.9 million Tesla vehicles over FSD traffic violations
News Summary
The U.S. National Highway Traffic Safety Administration (NHTSA) has launched an investigation into 2.88 million Tesla vehicles equipped with its Full Self-Driving (FSD) system. The probe follows more than 50 reports of traffic safety violations, including 14 crashes and 23 injuries. NHTSA stated that the FSD system, an assistance system requiring driver attention, has "induced vehicle behavior that violated traffic safety laws," specifically citing instances of vehicles driving through red lights and against the proper direction of travel during lane changes. Reports include six crashes where FSD-engaged Tesla vehicles proceeded into intersections against red lights. This preliminary evaluation is the first step before the agency could seek a recall if it determines the vehicles pose an unreasonable safety risk. The investigation adds to NHTSA's existing probes into Tesla's FSD and other advanced features, including prior inquiries into collisions under reduced visibility conditions and crashes involving a remote parking feature.
Background
The U.S. National Highway Traffic Safety Administration (NHTSA) has been investigating Tesla's advanced driver-assistance systems, including Autopilot and Full Self-Driving (FSD), for over a year. In October 2024, NHTSA initiated an inquiry into 2.4 million Tesla vehicles with FSD following four reported collisions in conditions of reduced roadway visibility, including a fatal crash in 2023. In January 2025, NHTSA also opened an investigation into 2.6 million Tesla vehicles concerning reports of crashes involving a feature that allows users to move their cars remotely. Furthermore, the agency is reviewing Tesla's deployment of self-driving robotaxis in Austin, Texas, which launched in June 2025. Tesla maintains that FSD "will drive you almost anywhere with your active supervision, requiring minimal intervention," but clarifies that it does not make the car fully self-driving.
In-Depth AI Insights
What are the deeper implications of this probe for Tesla's "Full Self-Driving" brand and its valuation narrative? - This investigation directly challenges the credibility of Tesla's "Full Self-Driving" moniker and its perceived technological leadership, potentially forcing the company to re-evaluate its marketing and feature definitions. - Persistent regulatory scrutiny and the risk of a recall could erode investor confidence in future FSD revenue streams, which are a significant component of Tesla's premium valuation. - Tesla may need to allocate substantial resources to enhance FSD safety features and clarify liability for driver-assist systems, increasing costs and potentially delaying its commercialization timeline for autonomous driving. How might the increasing regulatory scrutiny on autonomous driving technology, as evidenced by this action, presage future industry regulation? - NHTSA's proactive stance suggests a shift in regulatory approach, moving from reactive incident response to proactive risk mitigation and the setting of technical standards for autonomous systems. - This likely indicates that future autonomous driving technologies will face more stringent certification, testing, and deployment processes to ensure public safety, potentially slowing the pace of innovation or forcing companies to invest more heavily in safety. - The fact that this probe is advancing under a generally pro-business Trump administration suggests that public safety concerns override political inclinations, setting a significant precedent for regulation across the entire autonomous driving sector. Beyond direct impacts, how might this incident reshape the competitive landscape for Tesla within the broader EV and tech sectors? - Market skepticism regarding Tesla's autonomous driving advantage could create opportunities for traditional automakers and emerging tech companies investing in ADAS to catch up. - Competitors may leverage this situation to highlight their own incremental, safety-first development strategies for autonomous solutions, gaining an edge in consumer trust. - This might also prompt the entire industry to prioritize the reliability and safety of L3 and lower-level autonomous driving technologies over aggressive "Full Self-Driving" marketing, leading to a more pragmatic technological roadmap.