The National Highway Traffic Safety Administration (NHTSA) has reopened its investigation into Tesla Inc.’s (NASDAQ:TSLA) Autopilot system amid concerns that a fix implemented months ago may not have adequately addressed the misuse of the technology.
The NHTSA disclosed on Friday that it initiated a probe into Tesla’s Autopilot recall, conducted in December. The agency is particularly concerned about the effectiveness of Tesla’s remedy, citing 20 crashes involving vehicles that received the over-the-air software update.
According to the NHTSA, more than 2 million Tesla vehicles are subject to this investigation. Following the announcement, Tesla’s shares dropped by as much as 1.7% during regular trading, bringing the year-to-date decline to over 30%.
This investigation contradicts CEO Elon Musk’s optimism regarding Tesla’s automated driving systems. Musk had announced plans to unveil a driverless robotaxi in August, despite setbacks in meeting regulatory requirements. During a recent earnings call, Musk expressed confidence in overcoming regulatory hurdles, emphasizing the importance of demonstrating the safety of autonomous vehicles.
Tesla initiated the Autopilot recall in December in response to concerns raised by the NHTSA during a long-standing defect investigation. However, according to the agency, a portion of the remedy requires car owners to opt in, and drivers can easily reverse the changes made by Tesla.
Additionally, Tesla has deployed separate Autopilot updates that address concerns raised by the NHTSA but were not included in the December recall. The NHTSA intends to investigate why these updates were not part of the initial recall.
This is not the first time Tesla has faced scrutiny from the NHTSA over software updates to Autopilot. In September 2021, the company deployed updates shortly after the agency initiated its defect investigation into the driving system.
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