Tesla is recalling 362,000 vehicles over FSD software concerns

by Ana Lopez

Tesla is recalling up to 362,000 vehicles over concerns from federal agencies that the company’s fully self-driving mode, or FSD, could cause vehicles to exceed speed limits and drive at unpredictable (and illegal) intersections, increasing the risk of accidents. CEO Elon Musk has positioned FSD as a key Tesla AI initiative, but the company has yet to meet its self-driving car targets.

If notes Reutersthe latest recall comes just two weeks before Tesla’s much-anticipated March 1 investor day, shortly after the airing of a controversial Super Bowl ad in which a Tesla flattened strollers and decapitated a dummy.

Tesla reported deferred revenue of $2.9 billion at the end of 2022. Revenues came from free supercharging programs, Internet connectivity and over-the-air software updates. In the fourth quarter of 2022, Tesla released an FSD beta for all of its eligible customers.

The National Highway Traffic Safety Administration (NHTSA) is investigating a total of 830,000 Teslas with driver assistance systems, including Autopilot, following crashes involving parked emergency vehicles. Tesla has previously faced criticism for its self-driving technology. In 2022, the company recalled nearly 54,000 vehicles with FSD Beta software because it could allow some models to perform illegal rolling stops. The NHTSA opened two new investigations into Tesla vehicle accidents last December, including an eight-vehicle accident on San Francisco’s Bay Bridge.

With Investor Day just around the corner, all eyes will be on Elon Musk and his EV company as they take on these latest challenges.

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