Federal Regulators Intensify Tesla Self-Driving Investigation After Crashes

Federal safety officials are stepping up their investigation into Tesla's self-driving technology after nine crashes occurred when the system failed to detect hazards in poor weather conditions. The probe could potentially lead to a recall of 3.2 million Tesla vehicles as the company prepares to launch fully autonomous robotaxis.

Federal automotive safety officials are intensifying their examination of Tesla’s autonomous driving technology following multiple accidents involving vehicles operating in self-driving mode, creating new challenges for CEO Elon Musk as he prepares to introduce a revolutionary vehicle without traditional controls.

The National Highway Traffic Safety Administration announced in a recent document that investigators are reviewing nine collisions where Tesla’s automated driving system failed to promptly warn drivers to resume manual control during challenging weather conditions such as fog, with the vehicle’s camera systems unable to detect roadway dangers. This NHTSA announcement indicates that a regulatory review launched in 2024 focusing on low-visibility accidents may now progress toward enforcement measures, potentially resulting in a recall affecting 3.2 million Tesla automobiles.

Tesla shares dropped 3.1% to $380.75 during Thursday’s early afternoon market activity.

This heightened government oversight arrives as Tesla works to persuade shareholders that the company’s future depends more on widespread adoption of its autonomous driving technology rather than traditional vehicle sales, which have been declining. Musk has announced plans to transform millions of existing Tesla vehicles into rental taxis that owners could lease out during periods of non-use.

Supporting this strategic shift, Musk revealed Tesla will launch its driverless robotaxi program in multiple American cities this year, with nobody operating the vehicle. The company also plans to begin manufacturing its Cybercab model, featuring no steering wheel or pedals, for consumer purchase next month.

Tesla has not yet provided a response to requests for comment.

Tesla vehicles differ from other self-driving cars by depending exclusively on camera technology to identify road hazards. Competing systems combine cameras with light radar or lidar technology, a costlier approach that Musk has characterized as redundant.

The NHTSA investigation examining accidents during conditions involving sun glare, dust, or heavy fog will now advance to an “engineering analysis,” representing a more intensive level of regulatory review.

Tesla previously marketed its driver assistance technology as Full Self-Driving, or FSD, a designation that automotive specialists and government officials criticized as deceptive since operators must maintain constant road awareness and readiness to intervene immediately. The company subsequently modified the name to Full Self-Driving (Supervised).

Among the nine accidents being investigated, Tesla has informed regulators that three incidents could have been prevented with newer wireless FSD software updates.

Tesla currently faces multiple additional regulatory investigations, including one examining FSD-equipped vehicles that run red lights and another concerning door handles that allegedly malfunctioned during crashes, preventing passenger escape.