Tesla recalls 362,000 vehicles for self-driving crash risk

Move was made in rare intervention by federal regulators

Tesla is recalling hundreds of thousands of vehicles with its Full Self-Driving system to fix problems with the way it behaves around intersections and following posted speed limits. AP

Tesla is recalling 362,000 vehicles to update its Full Self-Driving (FSD) software after US regulators said on Thursday the driver assistance system did not adequately follow traffic safety laws and could cause crashes.

The National Highway Traffic Safety Administration said the Tesla software allows a vehicle to “exceed speed limits or travel through intersections in an unlawful or unpredictable manner”, which “increases the risk of a crash”.

The move is a rare intervention by federal regulators in a real-world testing programme that the company sees as crucial to the development of cars that can drive themselves. FSD Beta is used by hundreds of thousands of Tesla customers.

Tesla will release an over-the-air software update free of charge, and the electric vehicle maker said is not aware of any injuries or deaths that may be related to the recall issue.

The setback for Tesla's automated driving effort comes about two weeks before the company's March 1 investor day, during which chief executive Elon Musk is expected to promote the EV maker's artificial intelligence capability and plans to expand its vehicle line-up.

NHTSA has an ongoing investigation it opened in 2021 into 830,000 Tesla vehicles with driver assistance system Autopilot over a string of crashes with parked emergency vehicles.

Possible situations where the problem could occur include travelling or turning through certain intersections during a yellow traffic light and making a lane change out of certain turn-only lanes to continue travelling straight, NHTSA said.

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  Tesla chief executive Elon Musk speaks during the opening day of the Tesla Gigafactory in Gruenheide, Germany. EPA

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  Musk speaks next to German Chancellor Olaf Scholz and the prime minister of Brandenburg state, Dietmar Woidke, during the opening ceremony. AFP

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  The Tesla chief, right, was cheered as he oversaw the handover of the car maker's first German-made cars at the Gruenheide plant. EPA

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  Musk described the opening as "another step in the direction of a sustainable future". EPA

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  Tesla is likely to launch a test version of its new "full self-driving" software in Europe, possibly next year, the chief executive said. EPA

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  Musk dances as he hands over the first Teslas from the new factory. Getty Images

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  Musk said battery production will be a "challenge" next year and a "limiting factor" in the coming years. Reuters

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  Tesla cars are parked at the site of the new Tesla Gigafactory in Gruenheide, Germany. Reuters

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  Tesla was handing over the first Model Y cars made at its €5 billion Gruenheide plant to clients on March 22, the company said. Getty Images

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  The new Tesla Gigafactory is the company's first European production centre. Getty Images

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  Newly completed Tesla Model Y electric cars parked at the site near Gruenheide. Getty Images

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  The new factory is the largest investment in a German car factory in recent history. Getty Images

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  A road sign reading 'water protection area' next to the Tesla logo at the site of the Tesla factory. EPA

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  A road sign reading 'Tesla Street' at the new plant. EPA

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  A building under construction at the Tesla factory. EPA

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  At full capacity, the factory will produce 500,000 cars annually. EPA

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  Tesla plans to hire 12,000 workers at the plant. Bloomberg

Last year, Tesla recalled nearly 54,000 vehicles with FSD Beta software that may allow some models to conduct “rolling stops” and not come to a complete stop at some intersections, posing a safety risk, NHTSA said.

Tesla and NHTSA say FSD's advanced driving features do not make the cars autonomous and require drivers to pay attention.

Meanwhile, several employees at a Tesla factory in New York were fired a day after launching union organising efforts, according to Tesla Workers United.

Members filed a complaint against Tesla with the National Labour Relations Board, accusing the electric vehicle maker of unfair labour practices.