Trending Now - Federal Investigation Into Tesla's Self-driving Software Deepens

WHO:

National Highway Traffic Safety Administration (NHTSA)

Elon Musk, CEO of Tesla

Tesla, Inc.

WHAT:

The NHTSA has escalated a probe into Tesla's self-driving software after several crashes.

The investigation includes nine crashes where the self-driving software failed to alert drivers in poor conditions.

The potential enforcement action could include a recall of 3.2 million Tesla vehicles.

Tesla stock fell 3.1% to $380.75.

Tesla's driver assistance software was previously called Full Self-Driving and has been renamed to Full Self-Driving (Supervised).

Tesla reported that three of the nine crashes would not have occurred with new over-the-air FSD upgrades.

WHERE:

New York, United States

Several U.S. cities where Tesla plans to roll out its robotaxi service.

WHEN:

The regulatory investigation began in 2024.

Tesla plans to launch production of its no-wheel-no-pedal Cybercab in April 2026.

WHY:

The increased regulatory scrutiny is due to crashes occurring in low-visibility conditions such as fog, sun glare, and dust.

Tesla is attempting to shift its business model from selling cars to making its self-driving software more widespread.

HOW:

Tesla vehicles rely solely on cameras to detect road hazards, unlike other autonomous vehicles that use additional technologies like light radar or lidar.

The NHTSA's probe will move to an “engineering analysis,” indicating a more serious level of scrutiny.

(UPDATED March 19, 2026 19:25 UTC)

The National Highway Traffic Safety Administration has escalated its investigation into Tesla's self-driving software following several crashes, including nine incidents where the system failed to alert drivers in poor conditions. This probe could lead to a recall of 3.2 million vehicles, and Tesla's stock has already dropped by 3.1% to $380.75 as the company prepares to launch its no-wheel-no-pedal Cybercab in April. Tesla's driver assistance software, now called Full Self-Driving (Supervised), relies solely on cameras for hazard detection, which is under increased scrutiny due to crashes occurring in low-visibility situations like fog and sun glare.