Tesla Recalls 362,000 Cars In The U.S. Due To Full Self-Driving Software.
Tesla Inc will recall over 362,000 U.S. cars to patch its Full Self-Driving Beta program after U.S. authorities announced Thursday that the automated driving technology did not comply with traffic safety regulations and might cause collisions.
The National Highway Traffic Safety Administration (NHTSA) said that the Tesla software allows a vehicle to "reach speed limits or proceed through intersections in an illegal or unexpected manner, which increases the danger of a collision."
Tesla said it differed with NHTSA's assessment but finally complied with the agency's January request. The electric car company has already argued with the NHTSA, which has many Tesla investigations open, over various safety concerns and recall requests.
Tesla, whose shares finished at $202.04, down 5.7%, will provide a free over-the-air (OTA) software upgrade.
The EV manufacturer said it is unaware of any accidents or deaths associated with the recall problem. The manufacturer reported 18 warranty claims.In the fourth quarter, Tesla issued FSD Beta to virtually all its 400,000 FSD clients throughout the United States and Canada, generating $324 million in FSD revenue.
IBM expects to realize almost $1 billion in deferred revenue once software upgrades are released.Musk has categorized FSD hardware as one of Tesla's artificial intelligence endeavors.
Musk said in a May 2017 conversation with participants of a Tesla car club that autonomous driving is "critical" for the firm. That distinguishes Tesla's high market value and almost no value.In response to a series of collisions with parked emergency services, the NHTSA started an inquiry into 830,000 Tesla cars equipped with the driver assistance technology Autopilot in 2021.
The NHTSA is examining whether Tesla cars effectively assure driver attentiveness. Thursday, NHTSA said that despite the FSD recall, its “investigation into Tesla's Autopilot and related vehicle technologies remains open and ongoing.”
Tesla said that under “some rare scenarios... the function might possibly violate local traffic rules or conventions when performing certain driving maneuvers.”
According to the NHTSA, circumstances where the issue might arise include passing through or turning at certain crossings with yellow lights and changing lanes from specific turn-only zones to continue straight.
"The system may not appropriately react to changes in speed limit restrictions or account for such driver's modification of the car's speed to exceed speed limits," the NHTSA said.The recall affects Model S and Model X cars from 2016 to 2023, Model 3 vehicles from 2017 to 2023, and Model Y vehicles from 2020 to 2023, outfitted with FSD Beta software or awaiting installation.
Democratic U.S. senators Ed Markey & Richard Blumenthal said the recall was "far overdue" and that Tesla must stop exaggerating the capabilities of its cars.This is a new disadvantage for Tesla's driver-assist technology. Elon Musk has frequently missed his own self-imposed deadlines for achieving self-driving capabilities, which he has promoted as a major cash cow.
This is an unusual intervention by federal authorities in a simple testing program that the business believes is critical to creating self-driving vehicles.The recall happens just under two weeks before the company's investor day on March 1, at which Musk is expected to tout the EV manufacturer's artificial intelligence prowess and expansion ambitions.
Although Tesla's Autopilot aids with steering, accelerating, and braking for other cars and pedestrians inside its lane, the firm claims FSD is a more sophisticated technology "intended to give more active guiding and aided driving" under the driver's active supervision.
By the conclusion of 2022, Tesla reported $2.9 billion in deferred revenue attributable to “availability to our FSD services, internet connection, free Supercharging programs, and over-the-air software upgrades, mostly on automobile sales.”
Elon tweeted on Thursday that the term "recall" for a remote software upgrade is "outdated and completely incorrect!"
NHTSA said that Tesla recalled approximately 54,000 U.S. cars equipped with FSD Beta software that may enable some models to make "rolling stops" but not come to a full stop at certain junctions, presenting a safety concern.
The improved driving capabilities of FSD, according to Tesla and the NHTSA, do not render vehicles driverless and need drivers to pay attention.In December, the National Highway Traffic Safety Administration (NHTSA) began two additional special investigations into collisions involving Tesla cars, including an eight-vehicle collision on the Bay Bridge in San Francisco in which a driver stated that the FSD system had malfunctioned.
Since 2016, the NHTSA has started over three-dozen investigations into Tesla collisions in which sophisticated driver assistance technology was suspected, and 19 fatalities have been recorded.
