Tesla Recalls 360,000 Cars Equipped with Full Self-Driving Beta Software

Tesla, Inc. (TSLA) will recall 362,758 vehicles after federal regulators discovered its Full Self-Driving (FSD) Beta software program may trigger crashes, accounting for about 90% of Tesla autos utilizing the software program for metropolis streets.

Key Takeaways

  • Tesla to recall greater than 360,000 vehicles after regulators discovered Full Self-Driving Beta software program could cause crashes.
  • The recall impacts 2016-2023 Mannequin S and Mannequin X, 2017-2023 Mannequin 3, and 2020-2023 Mannequin Y vehicles with the software program or these pending software program set up.
  • Regulators stated the software program brought on vehicles to exceed velocity limits, or behave in an unsafe or unpredictable method whereas navigating intersections.

The software program brought on the Tesla vehicles to “exceed velocity limits” or journey in an “unsafe” or “unpredictable” method whereas navigating intersections, in accordance with a recall discover posted on the Nationwide Freeway Visitors Security Administration’s (NHTSA) web site Thursday.

“The FSD Beta system could permit the automobile to behave unsafe round intersections, corresponding to touring straight via an intersection whereas in a turn-only lane, getting into a cease sign-controlled intersection with out coming to an entire cease, or continuing into an intersection throughout a gentle yellow site visitors sign with out due warning. As well as, the system could reply insufficiently to modifications in posted velocity limits or not adequately account for the driving force’s adjustment of the automobile’s velocity to exceed posted velocity limits,” stated the NHTSA.

The recall will influence vehicles which have deployed the FSD beta software program or are pending set up. The recall applies to autos of the next years and fashions: 2016-2023 Mannequin S; 2017-2023 Mannequin X and Mannequin 3; 2020-2023 Mannequin Y. The corporate will deploy a free “over-the-air (OTA) software program replace” and notify automobile house owners by way of letter by April 15.

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FSD Beta is Tesla’s most superior autopilot software program, giving drivers entry to options that are not totally debugged. Drivers will pay a $15,000 lump sum to activate FSD Beta or subscribe for $99/month or $199/month relying on their prior purchases.

Tesla reported $324 million of FSD-related income within the fourth quarter of 2022, in accordance with SEC filings.

This is not the primary time Tesla has needed to recall vehicles attributable to points with FSD software program. Tesla recalled virtually 54,000 vehicles final 12 months after the NHTSA discovered FSD Beta may permit a automobile to carry out a rolling cease, during which it fails to make an entire cease at a cease signal.

Tesla inventory fell greater than 5% on Thursday, ending a run of features that helped it attain a three-month excessive on Wednesday.