Investigation into Tesla's FSD Software

By David Shepardson and Akash Sriram

WASHINGTON (Reuters) – The U.S. auto safety regulator opened an investigation into 2.4 million Tesla vehicles equipped with Full Self-Driving (FSD) software after four reported collisions, including a fatal crash in 2023.

The National Highway Traffic Safety Administration (NHTSA)'s preliminary evaluation marks the initial step before potentially seeking a recall of vehicles deemed an unreasonable safety risk.

This scrutiny of Tesla's advanced driver assistance system coincides with CEO Elon Musk's shift toward self-driving technology and robotaxis amid growing competition and weak demand.

Recently, Musk introduced the two-seater, two-door “Cybercab” robotaxi concept, which lacks steering wheel and pedals, relying on cameras and AI for navigation. Deployment would require NHTSA approval due to the absence of human controls.

NHTSA opened this inquiry following reports of crashes with FSD engaged under poor visibility conditions due to sun glare, fog, or airborne dust. One incident involved a fatal pedestrian strike in Rimrock, Arizona, by a 2021 Tesla Model Y. Another crash resulted in injuries.

The probe includes Model S and X vehicles from 2016-2024 and Model 3, Model Y, and Cybertruck vehicles produced between 2017-2024.

The company has not commented yet, although its shares rose by 0.1% in early trading.

Tesla asserts that its FSD software requires active driver supervision and does not make the vehicles autonomous.

NHTSA is assessing the ability of FSD’s engineering to detect and respond to reduced roadway visibility. The agency is seeking information on similar FSD crashes and any recent updates or modifications Tesla has made to address safety in such conditions.

The review will evaluate the timing, purpose, capabilities of any updates, as well as Tesla’s safety impact assessments.

Tesla's FSD technology aims for high automation, allowing vehicles to manage most driving tasks independently.

In December, Tesla recalled over two million U.S. vehicles to add safeguards to the Autopilot system, with NHTSA investigating the adequacy of that recall in ensuring driver attention.

Furthermore, Tesla disclosed that the U.S. Justice Department issued subpoenas related to FSD and Autopilot. Tesla has faced at least two fatal accidents involving FSD technology, including an incident in April where a Model S in FSD mode fatally struck a motorcyclist.

Experts have raised concerns about Tesla’s “camera-only” approach to autonomous driving, suggesting it poses risks in low-visibility conditions since there are no backup sensors. Jeff Schuster from GlobalData highlighted that adverse weather could affect the cameras' functionality, impacting the regulatory landscape for the technology's near-term launch.

Rival companies utilizing robotaxis generally employ more expensive sensors like lidar and radar to ensure a better understanding of driving environments.