Federal regulators have launched a sweeping new investigation into Tesla’s Full Self-Driving (FSD) system following a series of troubling incidents. These include crashes, red-light violations, and vehicles driving on the wrong side of the road. The National Highway Traffic Safety Administration (NHTSA) said the investigation involves 58 incidents tied to the FSD software, resulting in over a dozen crashes, several fires, and nearly two dozen injuries.
The probe affects roughly 2.9 million Tesla vehicles equipped with the FSD system. NHTSA stated that many drivers reported no warnings before their vehicles made unexpected or unsafe moves. Tesla maintains that FSD is not fully autonomous and requires constant driver attention and supervision, despite its branding and public perception.
Critics argue that Tesla is effectively using public roads as a testing ground for its still-developing driver-assistance software. “The world has become a giant testing ground for Elon’s concept of full self-driving, and it’s not working,” said Ross Gerber, a longtime Tesla investor. This new investigation adds to several federal probes into Tesla’s Autopilot system, “summon” feature, and issues with delayed crash reporting.
Elon Musk’s ambitious plan to deploy fully autonomous Tesla taxis in major U.S. cities by next year is now in doubt, as regulatory scrutiny intensifies. At the same time, the company is struggling with slowing sales growth, increasing competition from other electric vehicle makers, and political backlash, especially in Europe and China.
Following the investigation announcement, Tesla’s stock dipped nearly 3% before recovering slightly to close down 0.7%. Analysts and investors are now more skeptical, with some warning that hype is no longer enough to sustain confidence. “Execution — not hype — is what matters,” said Morningstar analyst Seth Goldstein.
