Tesla recalls 362,000 U.S. vehicles over Full Self-Driving software
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[February 17, 2023] By
David Shepardson
WASHINGTON (Reuters) -Tesla Inc will recall more than 362,000 U.S.
vehicles to update its Full Self-Driving (FSD) Beta software after U.S.
regulators said on Thursday the driver assistance system did not
adequately adhere to traffic safety laws and could cause crashes.
The National Highway Traffic Safety Administration (NHTSA) said the
Tesla software allows a vehicle to "exceed speed limits or travel
through intersections in an unlawful or unpredictable manner increases
the risk of a crash."
Tesla said it disagreed with NHTSA's analysis but ultimately acquiesced
to the safety agency's January request. The electric vehicle
manufacturer has previously clashed with NHTSA, which has a number of
pending Tesla probes, over other safety issues and recall demands.
Tesla, whose shares closed down 5.7% at $202.04, will release an
over-the-air (OTA) software update free of charge. The EV 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.
The recall covers 2016-2023 Model S and Model X vehicles, 2017-2023
Model 3, and 2020-2023 Model Y vehicles equipped with FSD Beta software
or pending installation.
U.S. senators Ed Markey and Richard Blumenthal, both Democrats, said the
recall was "long overdue," adding, "Tesla must finally stop overstating
the real capabilities of its vehicles."
This is a fresh setback for Tesla's driver assistance system. Chief
Executive Elon Musk has repeatedly missed his own targets to achieve
self-driving capability, which he has touted as a potential cash cow.
The move is a rare intervention by federal regulators in a real-world
testing program that the company sees as crucial to the development of
cars that can drive themselves.
The recall comes less than two weeks before the company's March 1
investor day, during which Musk is expected to promote the EV maker's
artificial intelligence capability and plans to expand its vehicle
lineup.
While Tesla's Autopilot feature assists with steering, accelerating and
braking for other vehicles and pedestrians within its lane, the company
says FSD is a more advanced system “designed to provide more active
guidance and assisted driving” under active supervision of the driver.
Tesla reported having $2.9 billion in deferred revenue at the end of
2022 related to "access to our FSD features, internet connectivity, free
Supercharging programs and over-the-air software updates primarily on
automotive sales."
Tesla could not be reached for comment, but Musk tweeted on Thursday
that the word "recall" for an over-the-air software update is
"anachronistic and just flat wrong!"
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A Tesla Model S charges at a Tesla
supercharger station in Cabazon, California, U.S. May 18, 2016.
REUTERS/Sam Mircovich
Tesla released FSD Beta to nearly all of its 400,000 FSD customers
in the United States and Canada in the fourth quarter, when it
recognized FSD revenue of $324 million. It said it expects to
recognize nearly $1 billion of deferred revenue that remains over
time as software updates are delivered.
ONGOING PROBES
Musk has positioned FSD technology as one of several artificial
intelligence initiatives at Tesla.
Last May, in an interview with members of a Tesla owners club, Musk
called full self driving "essential" for the company. "It’s really
the difference between Tesla being worth a lot of money or worth
basically zero."
NHTSA has an ongoing investigation it opened in 2021 into 830,000
Tesla vehicles with driver assistance system Autopilot over a string
of crashes with parked emergency vehicles. NHTSA is reviewing
whether Tesla vehicles adequately ensure drivers are paying
attention. NHTSA said on Thursday despite the FSD recall its
"investigation into Tesla’s Autopilot and associated vehicle systems
remains open and active."
Tesla said in "certain rare circumstances ... the feature could
potentially infringe upon local traffic laws or customs while
executing certain driving maneuvers."
Possible situations where the problem could occur include traveling
or turning through certain intersections during a yellow traffic
light and making a lane change out of certain turn-only lanes to
continue traveling straight, NHTSA said.
NHTSA said "the system may respond insufficiently to changes in
posted speed limits or not adequately account for the driver's
adjustment of the vehicle's speed to exceed posted speed limits."
Last year, Tesla recalled nearly 54,000 U.S. vehicles with FSD Beta
software that may allow some models to conduct "rolling stops" and
not come to a complete stop at some intersections, posing a safety
risk, NHTSA said.
Tesla and NHTSA say FSD's advanced driving features do not make the
cars autonomous and require drivers to pay attention.
In December, NHTSA opened two new special investigations into
crashes involving Tesla vehicles, including an eight-vehicle crash
in San Francisco on the Bay Bridge in which a driver reported the
FSD feature had malfunctioned.
Since 2016, NHTSA has opened more than three dozen investigations
involving Tesla crashes where advanced driver assistance systems
were suspected of use and 19 deaths were reported.
(Reporting by David Shepardson in WashingtonAdditional reporting by
Joseph White in Detroit and Hyun Joo Jin in San FranciscoEditing by
Ben Klayman, Peter Henderson and Matthew Lewis)
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