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Home » US Recall of 362,000 Tesla Vehicles Involving Full Self-Driving Software

US Recall of 362,000 Tesla Vehicles Involving Full Self-Driving Software

17 February 2023, Friday
Tesla Inc is recalling more than 362,000 of its vehicles in the United States to update its Full Self-Driving (FSD) Beta software, due to the U.S. regulators' findings that the driver assistance system does not adhere to traffic safety laws and could potentially cause crashes.

In a statement, the National Highway Traffic Safety Administration revealed that the Tesla software allows vehicles to "exceed speed limits or travel through intersections in an unlawful or unpredictable manner," increasing the likelihood of a collision.

Tesla declared that it disagreed with the NHTSA's analysis, but in January conceded to the safety agency's request. This is not the first time the electric vehicle manufacturer has gone head-to-head with the NHTSA, with various safety issues and recall demands already under investigation.

Tesla will release a free software update over-the-air (OTA). It has not revealed any reports of injury or death resulting from the recall problem. There have been 18 warranty claims.

Shares in the company closing down 5.7% at $202.04.

Tesla has recently issued a voluntary recall of its 2016-2023 Model S and Model X, 2017-2023 Model 3, and 2020-2023 Model Y vehicles, to update the software for their FSD Beta driver assistance system. This comes after U.S. Senators Ed Markey and Richard Blumenthal expressed their criticism that the car manufacturer had been overstating the capabilities of the vehicles. The recall affects vehicles that have already been equipped with the FSD Beta software or are awaiting installation.

This news is yet another setback for CEO Elon Musk's plans to make Tesla vehicles autonomous, something he had been promoting as a potentially lucrative venture for the company. However, despite his ambitions, he has so far been unable to meet his own deadlines.

The US regulatory agency recently issued a recall for electric vehicle maker Tesla's Full Self-Driving (FSD) vehicles. This is a unique step taken by the federal government to assess a real-world testing program, which Tesla considers to be a pivotal part of the development of autonomous automobiles. 

The recall arrives prior to the company's Investor Day on March 1, where CEO Elon Musk is anticipated to emphasize Tesla's Artificial Intelligence (AI) ability and its intentions to diversify its vehicle selection. 

Tesla's Autopilot function lends a hand with navigation, acceleration and breaking in relation to other nearby cars and pedestrians within its lane. The business mentions FSD as a more up-to-date system, which is intended to deliver more active support and supervised driving with the driver's ongoing observation.

Tesla reported having $2.9 billion in deferred revenue at the end of 2022 due to access to its FSD features, internet connectivity, free Supercharging programs and software upgrades mostly related to automotive sales. 
When enquired, Tesla could not comment, but Musk tweeted on Thursday that recall for an over-the-air software update is anachronistic and just flat wrong!

In the fourth quarter, Tesla released FSD Beta to the majority of its 400,000 FSD customers across the United States and Canada, recognizing FSD revenue of $324 million at the same time. Moving forward, the company expects to recognize almost $1 billion of deferred revenue as it continues delivering software updates in the long run. Elon Musk has identified FSD technology as a major part of Tesla's Artificial Intelligence initiatives.

In an interview with members of a Tesla owners club last May, Elon Musk dubbed full self-driving technology essential for the company, emphasizing that it would be the factor that determines the value of Tesla. The National Highway Traffic Safety Administration (NHTSA) has launched an investigation this year into 830,000 Tesla vehicles that have the driver assistance system Autopilot in light of a series of crashes involving parked emergency vehicles. NHTSA said that they are still looking into whether these vehicles sufficiently ensure that drivers keep their eyes on the road, despite the recent recall of the FSD system. In response to the recall, Tesla has acknowledged that the feature may transgress some local traffic rules and regulations during certain scenarios.

The National Highway Traffic Safety Administration (NHTSA) reported that Tesla’s Full Self-Driving (FSD) Beta software could potentially cause issues when traveling, turning, or making lane changes in certain situations. Such problems may include a system that fails to respond adequately to changes in posted speed limits, or does not properly account for the driver’s adjustment of the vehicle’s speed to exceed legal limits. In response to this, last year Tesla recalled over 54,000 vehicles in the US equipped with the FSD Beta software, as rolling stops at intersections may pose a safety risk.

In December 2020, the National Highway Traffic Safety Administration (NHTSA) opened two new special investigations related to crashes involving Tesla vehicles. This included an eight-vehicle collision on the Bay Bridge in San Francisco, where the driver reported possible malfunctioning of the Full Self-Driving (FSD) feature.

To date, NHTSA has opened more than three dozen investigations into Tesla crashes where the use of advanced driver assistance systems was suspected, and these have been linked to 19 reported deaths.

However, Tesla and NHTSA agree that FSD's advanced driving features do not make the cars autonomous, but instead require drivers to remain attentive while operating the vehicles.
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