Tesla recalls 363,000 Full Self-Driving vehicles to fix ‘defect’

Tesla is recalling nearly 363,000 vehicles equipped with its Full Self-Driving (FSD) system to address issues with the way it behaves around intersections and adheres to posted speed limits.

The recall is part of a larger investigation by U.S. safety regulators into the company’s Autopilot system after regulators raised concerns about how Tesla’s system responded in four areas along the road.

The National Highway Traffic Safety Administration (NHTSA) said in a document released Thursday that Tesla will address the issues through an online software update in the coming weeks.

The system, which is being tested on public roads by as many as 400,000 Tesla owners, engages in unsafe behaviors such as driving straight through an intersection in a turning lane, failing to come to a full stop at a stop sign, Or through the NHTSA for not proceeding through an intersection at a yellow light with due care.

In addition, the system may not respond adequately to posted speed limit changes, or may fail to account for driver adjustments in speed, the documents say.

“FSD beta software that allows vehicles to speed or to navigate intersections in an illegal or unpredictable manner increases the risk of a crash,” the agency said in the filing.

A message was left Thursday seeking comment from Tesla, which has disbanded its media relations department.

From May 2019 to September 12, 2022, Tesla has received 18 warranty claims that may have been caused by the software. But the Austin, Texas-based electric automaker told the agency it was not aware of any injuries.

“Following discussions with NHTSA, Tesla initiated a recall to fix these defects, as required by law,” the agency said.

Despite their name and CEO Elon Musk’s claim that fully self-driving cars require no human intervention, Tesla says on its website that the car cannot drive itself and the owner must be ready to intervene at any time.

NHTSA’s testing found that Autosteer On City Streets, part of Tesla’s FSD beta testing, “created an unreasonable risk to motor vehicle safety due to inadequate compliance with traffic safety laws.”

The recall affects certain Model S and Model X vehicles from 2016 to 2023, as well as Model 3 from 2017 to 2023 and Model Y vehicles from 2020 to 2023 equipped with or to be installed with the software.

Shares of Tesla were down about 2% Thursday afternoon. The stock is up about 71% so far this year, reversing a massive 2022 decline.