Tesla's Autopilot Faces Deepening U.S. Probe, `830,000` Cars Under Scrutiny

U.S. auto safety regulators have escalated their investigation into keyword:Tesla Inc.'s Autopilot system to an engineering analysis, a critical step that moves the agency closer to demanding a recall. The probe now covers an estimated stat:830,000 keyword:Tesla vehicles, raising the stakes for the electric-vehicle maker.

Why Regulators Are Stepping Up Pressure

The National Highway Traffic Safety Administration (NHTSA) launched its initial probe in August 2021 after identifying stat:11 crashes since January 2018 in which keyword:Tesla models struck stationary first-responder vehicles. According to the agency, those crashes resulted in stat:17 injuries and one death.

NHTSA's core concern is what it calls "foreseeable misuse" of the technology. The agency is investigating whether drivers have become over-reliant on Autopilot, leading to inattention and failure to respond in critical situations. The expanded probe will cover stat:2014-2021 keyword:Model Y, keyword:Model X, keyword:Model S, and keyword:Model 3 vehicles equipped with the driver-assistance system.

The Bottom Line for Investors

Upgrading a probe from a preliminary evaluation (PE) to an engineering analysis (EA) is a significant move. It signals that NHTSA has found reason to believe a safety defect may exist and requires a more rigorous technical assessment. If the EA confirms a defect that poses an unreasonable risk to safety, NHTSA can compel keyword:Tesla to issue a recall.

For its part, keyword:Tesla has consistently argued that Autopilot, when used correctly, improves safety. The company's manuals instruct drivers to maintain full attention and keep their hands on the wheel. However, the intensifying investigation may force keyword:Tesla to implement more robust driver-monitoring features or limit the system's operational scope.