Tesla, Inc. (NASDAQ:TSLA) shares are trading lower Thursday following reports suggesting the U.S. National Highway Traffic Safety Administration will open a probe into 2.88 million Tesla vehicles over reports of Full Self-Driving traffic violations.
What To Know: According to Reuters, the National Highway Traffic Safety Administration (NHTSA) said it is opening an investigation into Tesla vehicles equipped with Full Self-Driving after receiving more than 50 reports of traffic-safety violations and multiple crashes.
The agency said the system, which still requires drivers to remain attentive, has "induced vehicle behavior that violated traffic safety laws." Incidents reportedly include Teslas driving through red lights and traveling in the wrong direction during lane changes.
The NHTSA said it’s reviewing 58 reports of safety violations tied to FSD, including 14 crashes and 23 injuries. In six cases, Teslas continued through intersections against red lights, leading to collisions — four of which resulted in injuries.
The agency also plans to review FSD's behavior near railroad crossings. A driver in Houston told the NHTSA in 2024 that FSD was “not recognizing traffic signals,” and claimed Tesla had witnessed the issue firsthand, but didn’t want to fix it.
The new probe marks the latest in a series of investigations into Tesla's advanced driver assistance features. The preliminary evaluation could lead to a recall if regulators determine the vehicles pose a safety risk.
Tesla issued a software update for FSD this week. CEO Elon Musk said on X that Tesla vehicles will feel like they are “sentient” by version 14.3.
TSLA Price Action: At the time of writing, Tesla shares are trading 2.14% lower at $429.52, according to data from Benzinga Pro.
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