Tesla faces new questions about how cars in self-driving mode handle poor conditions

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Federal auto regulators have stepped up their investigation into Tesla after several of its cars crashed while using its self-driving feature, just as CEO Elon Musk prepares to roll out a new model without a steering wheel or pedals.

NEW YORK– Federal auto regulators have stepped up their investigation into Tesla after several of its cars crashed while using its self-driving feature, just as CEO Elon Musk prepares to roll out a new model without a steering wheel or pedals.

The National Highway Traffic Safety Administration said in a memo that it was examining nine crashes in which self-driving software failed to quickly alert drivers to take control in fog and other poor conditions because the vehicle’s cameras failed to detect road hazards. The NHTSA memo signals that a regulatory investigation launched in 2024 into poor visibility crashes could now lead to enforcement action, including possibly the recall of 3.2 million Tesla vehicles.

Tesla stock fell 3.1% to $380.75 in early afternoon trading Thursday.

The increased regulatory scrutiny comes as Tesla tries to convince investors that the company’s future lies less in selling cars as sales decline and more in making its self-driving software more widespread. Musk said he would soon turn the millions of Tesla cars already on the road into taxis that their owners can rent when they’re not using them.

As part of this transition, Musk said Tesla will roll out its driverless robotaxi service in several U.S. cities this year. It also plans to begin production of its wheelless, pedalless Cybercab, which will be sold to customers next month.

Tesla did not immediately respond to a request for comment.

Unlike other autonomous vehicles, Tesla vehicles rely solely on cameras to detect problems on the road. Others supplement the cameras with lightweight radar or lidar, a more expensive method that Musk has deemed unnecessary.

NHTSA’s investigation into accidents caused by sun glare, dust or too much fog will now move to “technical analysis,” a more serious level of review.

Tesla had called its driver-assistance software Full Self-Driving, or FSD, a name that auto experts and regulators called misleading because drivers must always keep their eyes on the road and be ready to take over at a moment’s notice. The company has since changed the name to Full Self-Driving (Supervised).

Of the nine accidents examined, Tesla told regulators that three would not have happened with new over-the-air FSD upgrades.

Tesla faces several other regulatory investigations, including one over its FSD-equipped cars running red lights and another over door handles that allegedly failed to work in crashes, trapping passengers inside.

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