Tesla's Full Self-Driving software is under federal investigation after more than 50 reported traffic violations including running red lights and crossing into opposing lanes. The NHTSA probe marks a critical escalation in autonomous vehicle safety oversight, potentially threatening Tesla's $12 billion FSD revenue stream just as the company released its latest AI-powered version.
The federal government just put Tesla's autonomous driving ambitions under a microscope. The National Highway Traffic Safety Administration opened a preliminary investigation into Tesla's Full Self-Driving software after documenting over 50 incidents where the AI system violated basic traffic laws - running red lights, crossing double yellow lines, and making illegal turns that put drivers and pedestrians at risk.
The timing couldn't be worse for Tesla. The investigation launched the same week CEO Elon Musk released FSD version 14, which he's been hyping for months as a breakthrough that incorporates real-world data from Tesla's limited robotaxi pilot in Austin, Texas. Instead of celebrating the launch, Tesla now faces potential regulatory action that could force a costly recall of its most profitable software feature.
The NHTSA's Office of Defects Investigation received at least 18 complaints about FSD failing to stop at red lights, plus six additional reports through Tesla's mandatory crash reporting system. But the red light violations are just the beginning - investigators documented equally dangerous lane violations where FSD "entered opposing lanes of travel during or following a turn" and "attempted to turn onto a road in the wrong direction despite the presence of wrong-way road signs."
What's particularly alarming is the pattern of repeat violations. Multiple incidents occurred at the same intersection in Joppa, Maryland, forcing NHTSA investigators to work directly with Maryland's Transportation Authority and State Police to determine if the problems were systematic. Tesla has since "taken action to address the issue at this intersection," according to NHTSA documents, suggesting the company knew about location-specific FSD failures.
This isn't Tesla's first rodeo with federal safety investigators. NHTSA closed an investigation into Tesla's less capable Autopilot system in April 2024 after identifying 13 fatal crashes, though a separate probe into Tesla's Autopilot fixes remains open. The agency also launched another focused on crashes in low-visibility conditions.
