Tesla is under investigation in the US due to FSD crashes ahead of its new model with no steering or pedals.

U.S. Auto Safety regulator National Highway Traffic Safety Administration (NHTSA) has started an investigation on Tesla’s driver assistance system after a number of crashes in low-visibility. This could also lead to further actions and a potential recall impacting a million of vehicles.

The probe, originated in 2024, has now been transformed into “engineering analysis” which is a serious phrase that typically leads to harsh decisions like recall or other regulatory action. The investigation could be expanded to as many as 3.2 million Tesla vehicles running in the US. 

Delayed Warnings & Low Visibility Issues

As per NHTSA's deep concern, the system’s delayed responses and improper driver alerts in situations where there is low visibility is compromised.

As Tesla is totally dependent on cameras, unlike competition using radar and LiDAR, the regulators are extensively testing the system whether it can be relied on the system's ability to handle in challenging conditions. Tesla has also responded by clarifying that three of the nine crashes are under review and will not be repeated with newer OTA updates to its Full Self-Driving (FSD) software.

This issue has worsened as Tesla has planned to introduce robotaxi service in multiple US cities as the company is working on a “Cybercab” model designed without steering wheels or pedals and is scheduled to be introduced next month. 

Multiple Probs Underway

However, this is not just a single probe but Tesla is currently dealing with multiple investigations with US regulators analysing the reports of FSD-equipped vehicles being incapable of stopping at red lights, as well as separate issues over door handles allegedly malfunctioning during crashes and not opening, thus trapping occupants inside.

Tesla’s advanced driver assistance system is also facing severe backlash as to how it was marketed. Earlier called as “Full Self Driving” regulators and safety experts are arguing on the name of the system as it is overstating its capabilities which they are not even capable of performing, as even after engaging FSD, drivers need to be attentive all the time.

However, Tesla has not replied back to these allegations and due to this the company’s stock has also fallen significantly by 3.2% to $380.30.