A Feature Synonymous With Tesla Is Now Under Investigation by Federal Authorities The investigation arrived one week after Tesla previewed its robotaxis.

By Sherin Shibu Edited by Jessica Thomas

Key Takeaways

  • As Tesla moves into a full self-driving future with robotaxis, a federal agency is investigating the safety of its current system.
  • The National Highway Traffic Safety Administration (NHTSA) filed an investigation into Tesla’s Full Self-Driving (Supervised) feature on Friday.
  • Tesla sold more than 1.8 million vehicles in 2023 alone.

Tesla is known for its Full Self-Driving (Supervised) feature, which packs automatic parking, lane changes and steering on city roads into an $8,000 upgrade for buyers. Though FSD is popular, new records filed on Friday morning show that a federal agency is concerned about the system's safety.

The National Highway Traffic Safety Administration (NHTSA) opened a preliminary investigation into all 2.4 million Tesla vehicles with FSD, including the Model 3 and Model Y, two of the most popular electric vehicles sold in the U.S. last year. The investigation follows four crashes involving Tesla cars; one resulted in a fatality, and one caused an injury.

Related: Elon Musk Announces the 'Cybercab' and Other Surprises at Tesla's 'We, Robot' Event. Here's What to Know.

The incidents were caused by low visibility conditions, like sun glare or fog, which interfered with FSD, the NHTSA wrote in the report. The preliminary review will look into how well FSD responds to low visibility conditions, if other FSD crashes happened under similar circumstances, and if Tesla makes any updates to the FSD system to improve safety.

Tesla Model 3. (Photo by Stanislav Kogiku/SOPA Images/LightRocket via Getty Images)

NHTSA's investigation arrived one week after Tesla held its robotaxi event. Robotaxis are meant to be fully autonomous, which Tesla itself acknowledges is difficult to achieve.

"Full autonomy will be dependent on achieving reliability far in excess of human drivers as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions," Tesla wrote on its website.

Tesla remains the market leader in electric vehicles, selling more than 1.8 million cars in 2023 alone. Its most recent earnings report, released earlier this month, shows that it delivered nearly half a million cars in Q3 alone, with delivery numbers up 6% from last year.

Related: Tesla Sales Show Demand Could Be Speeding Up For Electric Cars

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

What's Open on Easter Sunday? Costco and Target Will Close, But One Major Retailer Will Be Open. Here's What To Know.

The stock market was closed for Good Friday on April 18. Here's what's closed for Easter Sunday, April 20.

Leadership

Lead From the Top: 5 Core Responsibilities of a CEO

Knowing exactly what the chief executive's role entails is critical for steering a company to success.

Side Hustle

This Couple Started a Side Hustle to Improve a 'Terribly Made' Bathroom Essential. Now the Business Earns More Than $3 Million a Year.

Michael Fine and Lisa Schulner-Fine launched lifestyle brand Quiet Town in 2016 and have been growing it ever since.

Living

The 3 Lifestyle Habits That Made Me Sharper, Stronger and More Successful

These three simple yet powerful lifestyle changes transformed my productivity, energy and mindset. Here's how you can do the same.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business Solutions

You and Your Kids Can Develop Future-Proof Tech Skills for Only $56

Develop future-proof tech skills even if you have no previous tech experience, such as data storytelling, Python, ChatGTP, Internet of Things and more.