Washington, D.C. — Tesla is facing a major investigation by the U.S. National Highway Traffic Safety Administration (NHTSA) over its Full Self-Driving (FSD) system. The probe, announced in October 2025, concerns nearly 2.9 million Tesla vehicles and focuses on traffic violations and crashes allegedly linked to the FSD technology.
What the Investigation Covers
The NHTSA’s investigation targets incidents where Tesla vehicles operating in FSD mode reportedly ran red lights, made unsafe lane changes, or entered intersections against signals. According to preliminary reports:
- Over 50 incidents have been documented.
- These events resulted in 14 crashes and 23 injuries.
- Several crashes occurred at the same intersection in Joppa, Maryland, where Teslas reportedly entered intersections on red signals multiple times.
Tesla has reportedly tried to address safety concerns at specific locations, but the investigation will determine whether the FSD system complies with federal traffic safety standards.
Why This Matters
The NHTSA is conducting a preliminary evaluation, which could lead to a formal recall if the FSD system is found to pose significant safety risks.
This probe highlights broader concerns about Tesla’s driver-assistance systems, including Autopilot and FSD. Critics have argued that while these technologies aim to make driving safer, they can behave unpredictably in complex traffic scenarios, potentially endangering drivers, passengers, and pedestrians.
Impact on Tesla
Following the announcement of the investigation, Tesla’s stock experienced a slight dip. Market analysts note that regulatory scrutiny could affect public confidence in FSD technology and influence Tesla’s approach to autonomous driving development.
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Additionally, Tesla may need to implement software updates or safety modifications if the investigation finds violations, potentially affecting millions of vehicles and millions in costs.
What’s Next
The NHTSA continues to review data from reported incidents to assess whether the FSD system violates traffic safety laws or compromises driver supervision. The agency’s findings could have long-term implications for Tesla’s autonomous driving technology, regulatory compliance, and overall market perception.
Tesla has not issued a formal statement regarding the investigation, but the company is expected to cooperate with federal authorities as the probe continues.