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Tesla faces wider probe of self-driving
feature as it prepares to sell cars without steering wheels
[March 20, 2026]
By BERNARD CONDON
NEW YORK
(AP) — Federal auto regulators have escalated a probe of 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 with no steering wheel
or pedals.
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A motorist sits in a Tesla Model 3 at a Tesla charging station Friday,
March 13, 2026, in Lakewood, Colo., in Denver. (AP Photo/David
Zalubowski) |
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The
National Highway Traffic Safety Administration said in a memo
dated March 18 that it was examining nine crashes where the
self-driving software failed to quickly alert drivers to take
control in fog and other poor conditions because the vehicle's
cameras weren't picking out road hazards. The NHTSA memo signals
a regulatory investigation begun in 2024 over poor visibility
crashes could now lead to enforcement action, possibly including
a recall of 3.2 million Tesla vehicles.
Tesla stock fell 3.2% to $380.30.
The increased regulatory scrutiny comes as Tesla is trying to
convince investors that the future of the company lies less in
selling cars as sales drop and more in making its self-driving
software ubiquitous. Musk has said he will soon turn millions of
Tesla cars already on the road into taxis that their owners can
rent out when they are not using them.
As part of that transition, Musk said Tesla will roll out its
robotaxi service with no one behind the wheel in several U.S.
cities this year. It is also planning to launch production of
its no-wheel-no-pedal Cybercab to sell 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 spot problems on the road. Others supplement cameras
with light radar or lidar, a more expensive method that Musk has
dismissed as unnecessary.
The NHTSA probe into crashes when there is sun glare or dust or
too much fog will now move to an “engineering analysis,” a more
serious level of scrutiny.
Tesla had called its driver assistance software Full
Self-Driving, or FSD, a name that auto experts and regulators
have said is misleading because drivers must always keep their
eyes on the road and be ready to take over at any time. The
company has since changed the name to Full Self-Driving
(Supervised).
Of the nine crashes under review, Tesla has told regulators that
three would not have occurred with new over-the-air FSD
upgrades.
Tesla is facing several regulatory other probes including one
over its FSD-equipped cars running red lights and another on
door handles that reportedly failed to work in crashes, trapping
passengers inside.
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