U.S. regulator investigating Tesla's self-driving software after fatal crash

The U.S. National Highway Traffic Safety Administration (NHTSA) announced on Friday that it has launched an investigation into 2.4 million Tesla vehicles equipped with Full Self-Driving (FSD) software after four reported crashes, including one fatal incident.

According to NHTSA, the preliminary evaluation was initiated following crashes where FSD was engaged during conditions with reduced visibility, such as sun glare, fog, or airborne dust. "In one crash, the Tesla vehicle fatally struck a pedestrian. Another crash under similar conditions resulted in an injury," the agency stated.

The investigation covers various Tesla models, including the 2016-2024 Model S and Model X, the 2017-2024 Model 3, the 2020-2024 Model Y, and the 2023-2024 Cybertruck. The probe is the first step NHTSA may take before potentially demanding a recall if it determines the vehicles pose an unreasonable safety risk.

Tesla emphasizes on its website that the FSD software still requires active driver supervision and does not make the vehicles fully autonomous. NHTSA, however, is reviewing whether FSD’s engineering controls are capable of "detecting and responding appropriately to reduced roadway visibility conditions."

The agency is also investigating whether similar FSD crashes have occurred under low-visibility conditions and whether Tesla has implemented updates or modifications to improve the system in such situations. "The review will assess the timing, purpose, and capabilities of any updates, along with Tesla's evaluation of their safety impact," NHTSA added.

Tesla’s Self-Driving Focus and Robotaxi Plans

Tesla CEO Elon Musk has been doubling down on self-driving technology and robotaxi development as the company faces growing competition and weakening demand in its core auto business. Tesla did not immediately comment on the NHTSA investigation, and its shares fell 0.5% in pre-market trading.

Recently, Musk unveiled a concept for the "Cybercab" robotaxi — a two-seater vehicle without a steering wheel or pedals, relying entirely on cameras and artificial intelligence for navigation. Tesla will need NHTSA approval to deploy vehicles without manual controls.

Tesla’s FSD technology has been under development for years, aiming to achieve high levels of automation where vehicles manage most driving tasks independently. However, the system has drawn legal scrutiny due to accidents, including a fatal crash in April, when a Tesla Model S in FSD mode killed a 28-year-old motorcyclist near Seattle.

Industry Concerns over Tesla's "Camera-Only" Approach

Tesla’s decision to rely solely on cameras for both partially and fully autonomous driving systems has raised concerns among industry experts, especially in low-visibility conditions where backup sensors are absent.

"Weather conditions can impact the camera's ability to see things, and I think the regulatory environment will certainly weigh in on this," said Jeff Schuster, vice president at GlobalData. "This could become a major obstacle to launching these technologies and products in the near term."

In contrast, Tesla's competitors in the robotaxi space use advanced sensors like lidar and radar to better detect their driving environments.

Tesla previously issued a recall in December to add new safeguards to its Autopilot driver-assistance system, affecting more than two million vehicles in the U.S. NHTSA is still investigating whether that recall sufficiently addresses safety concerns.