Elon Musk’s Tesla recalls certain Model S, Model X, Model 3 and Model Y vehicles in the United States

Tesla said it would recall 3,62,000 U.S. vehicles to update its Full Self-Driving (FSD) beta software after U.S. regulators said on Thursday the driver assistance system failed to properly comply with laws on road safety and could cause accidents.

The National Highway Traffic Safety Administration said Tesla software allows a vehicle to “exceed speed limits or cross intersections illegally or unpredictably, increasing the risk of a crash.”

Tesla will release a free over-the-air (OTA) software update, and the electric vehicle maker said it is not aware of any injuries or deaths that may be related to the recall issue. The automaker said it had 18 warranty claims.

Shares of Tesla fell 1.6% to $210.76 (almost 17,420 rupees) on Thursday afternoon.

The recall affects 2016-2023 Model S, 2017-2023 Model X, 2017-2023 Model 3 and 2020-2023 Model Y vehicles with FSD Beta software installed or awaiting installation.

NHTSA asked Tesla to recall the vehicles, but the company said despite the recall, it disagreed with NHTSA’s analysis. The move is a rare intervention by federal regulators in a real-world testing program the company considers crucial to the development of cars capable of driving themselves. FSD Beta is used by hundreds of thousands of Tesla customers.

The setback to Tesla’s automated driving effort comes about two weeks before the company’s Investor Day on March 1, when Chief Executive Elon Musk is expected to promote the electric vehicle maker’s artificial intelligence capability and plans to expand its vehicle lineup.

Tesla could not immediately be reached for comment.

NHTSA has an ongoing investigation it opened in 2021 into 8.30,000 Tesla vehicles with Autopilot driver assistance system over a series of crashes with parked emergency vehicles. NHTSA is examining whether Tesla vehicles adequately ensure that drivers are attentive. NHTSA said Thursday despite the FSD’s reminder that “the investigation into Tesla’s Autopilot and related vehicle systems remains open and active.”

Tesla said that in “certain rare circumstances, the feature could potentially violate traffic laws or local customs when performing certain driving maneuvers.”

Possible situations where the problem could occur include moving or turning at certain intersections during a yellow light and changing lanes out of certain turning lanes to continue driving straight, NHTSA said.

NHTSA said “the system may not respond sufficiently to changes in posted speed limits or may not adequately reflect the driver’s adjustment of vehicle speed to exceed posted speed limits.”

Last year, Tesla recalled nearly 54,000 U.S. vehicles equipped with FSD Beta software that may allow some models to perform “rolling stops” and not come to a complete stop at certain intersections, posing a risk for safety, said NHTSA.

According to Tesla and NHTSA, FSD’s advanced driving features don’t make cars self-driving and force drivers to be careful.

© Thomson Reuters 2023