Key Takeaways
- U.S. regulators have granted Tesla a five-week extension to respond to allegations that its vehicles have broken traffic laws while operating in "full self-driving" mode.
- The investigation, which was opened in October, covers 2.9 million vehicles equipped with full self-driving technology (FSD) and includes 62 complaints of the cars running red lights or driving on the wrong side of the road.
- Tesla has argued that it has repeatedly told drivers that the FSD system cannot drive the cars by itself and that whoever is behind the wheel must be ready to intervene at all times.
- The company is under pressure to show success with FSD as its main business of selling cars is struggling, but investors are optimistic about Tesla’s future in robotaxi services and humanoid robots.
Introduction to the Investigation
The U.S. regulators have granted Tesla a five-week extension to respond to allegations that its vehicles have broken traffic laws while operating in what the electric automaker calls "full self-driving" mode. This investigation was opened in October after the National Highway and Traffic Safety Administration (NHTSA) collected dozens of reports of Tesla cars running red lights or driving on the wrong side of the road, sometimes crashing into other vehicles and causing injuries. The investigation covers 2.9 million vehicles, essentially all Teslas equipped with full self-driving technology, or FSD. This has raised concerns about the safety of Tesla’s FSD system and whether it is living up to its name.
The FSD System and Its Limitations
Critics say that the name "full self-driving" is a misnomer that has lulled drivers into handing full control over to their cars. However, Tesla has argued that it has repeatedly told drivers that the system cannot drive the cars by itself and that whoever is behind the wheel must be ready to intervene at all times. The FSD system is what is called Level 2 driver-assistance software, which requires drivers to pay full attention to the road. A new version of FSD was introduced in the fall, and the company is also testing a vastly upgraded version that does not require driver intervention. This version, which has been promised by Elon Musk for years, is seen as a key step towards making Tesla a leader in robotaxi services.
Regulatory Pressure and Public Concern
Regulators say that many Tesla drivers involved in accidents said the cars gave them no warning before behaving erratically. In a letter to Tesla, the NHTSA said that the company now has until February 23 to answer the government’s request for information. The original deadline was January 19, 2025. This extension gives Tesla more time to respond to the allegations and provide more information about its FSD system. The public is also concerned about the safety of Tesla’s FSD system, and the investigation has raised questions about the company’s ability to deliver on its promises.
Tesla’s Struggles and Future Prospects
Tesla lost its crown as the world’s bestselling electric vehicle maker last year due to a combination of reasons, including a backlash to Elon Musk’s right-wing politics, expiring U.S. tax breaks for buyers, and stiff competition at home and abroad. The company reported earlier this month that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier. Chinese rival BYD, which sold 2.26 million vehicles last year, is now the world’s biggest EV maker. Despite these struggles, investors are betting that Tesla and Musk can deliver on their ambitions to make Tesla a leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting this optimism, Tesla’s stock finished 2025 with a gain of approximately 11%.
Conclusion and Future Implications
The investigation into Tesla’s FSD system and the company’s response to the allegations will have significant implications for the future of autonomous driving. If Tesla is able to demonstrate the safety and effectiveness of its FSD system, it could pave the way for wider adoption of autonomous vehicles. However, if the investigation finds that the system is flawed, it could lead to increased regulatory scrutiny and a loss of public trust. As the investigation continues, Tesla will be under pressure to show that its FSD system is safe and reliable, and that it can deliver on its promises to make autonomous driving a reality. The outcome of this investigation will be closely watched by the industry and the public, and will have significant implications for the future of transportation.
