Tesla's December recall of 2 million vehicles over Autopilot now subject of regulatory probe

By Ciara Linnane

NHTSA is probing 'remedy adequacy' of the recall after identifying concerns from post-recall crash events and early vehicle tests

The U.S. National Highway Traffic Safety Administration said Friday it has launched an investigation of Tesla Inc.'s December recall of 2 million vehicles that were equipped with its Autopilot system.

In documents filed on its website on Friday, the regulator said the investigation will assess the "remedy adequacy" of the recall, which involved Model Y, Model X, Model S, Model 3 and Cybertrucks that were manufactured since 2012.

The NHTSA said its Office of Defects Investigation, or ODI, had identified concerns due to post-remedy crash events and the results of preliminary tests of remedied vehicles.

Tesla (TSLA) has said that a portion of the remedy requires the owner to opt in and allows a driver to readily reverse it. The EV maker has also used non-remedy updates to address issues that appear related to the concerns raised by the regulator for the original recall, said the NHTSA documents.

"This investigation will consider why these updates were not a part of the recall or otherwise determined to remedy a defect that poses an unreasonable safety risk," the regulator said Friday.

Tesla had initiated the December recall to review whether Autopilot "contained a defect that created an unreasonable risk to motor vehicle safety."

The ODI, has identified at least 13 crashes involving one or more fatalities and many more that caused serious injuries, in which "foreseeable driver misuse of the system played an apparent role."

Tesla's Autopilot has been the subject of many complaints, including that drivers do not pay sufficient attention when using the technology. The company agreed after the December recall to update the software to increase warnings and alerts to drivers, as the Associated Press has reported.

See also: Tesla driver in Seattle-area crash that killed motorcyclist told police he was using Autopilot

Autopilot can keep a car centered in its lane and a distance from vehicles in front of it, but Tesla says on its website that the cars can't drive themselves, despite the name.

The company's monitoring system sends alerts to drivers if it fails to detect torque from hands on the steering wheel, a system that experts have described as inadequate. They say the systems should have infrared cameras that make sure drivers have their eyes on the road.

Tesla's stock was up 0.8%, but is down 31% in the year to date, amid disappointing deliveries, concerns about growing competition especially in China and CEO Elon Musk's distraction given the many companies he is now running.

Opinion: Elon Musk gives Wall Street what it wants, but more pain could be around the corner

-Ciara Linnane

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04-26-24 1309ET

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