Key Points
- U.S. regulators have extended the deadline for Tesla to respond to an investigation into its “Full Self-Driving” technology.
- The NHTSA is looking into dozens of reports of Teslas breaking traffic laws and causing crashes.
- The investigation covers nearly 3 million vehicles. Critics say the name “Full Self-Driving” is misleading.
- The probe comes as Tesla is facing declining sales and increasing competition.
U.S. regulators have given Tesla an extra five weeks to respond to a major investigation into its “Full Self-Driving” (FSD) technology. The National Highway Traffic Safety Administration (NHTSA) is investigating dozens of reports of Tesla vehicles breaking traffic laws, including running red lights and driving on the wrong side of the road, which have sometimes resulted in crashes and injuries.
The investigation, which covers nearly 3 million Teslas equipped with FSD, was launched in October. Critics have long argued that the name “Full Self-Driving” is misleading and encourages drivers to be less attentive than they should be.
While Tesla has always maintained that drivers must be ready to take over at a moment’s notice, many of the drivers involved in these incidents said the cars gave them no warning before behaving erratically.
The NHTSA has asked Tesla for a mountain of information, and the company now has until February 23 to provide it. The original deadline was January 19.
This investigation comes at a tough time for Tesla. The company just lost its title as the world’s bestselling EV maker to the Chinese company BYD, and its sales have fallen for the second year in a row. With its core car-selling business struggling, Tesla is under a lot of pressure to prove that its self-driving technology is the real deal.
Despite the challenges, many investors are still betting that CEO Elon Musk can deliver on his promises of a future filled with robotaxis and humanoid robots. Tesla’s stock actually finished 2025 with a gain of about 11%, a sign that Wall Street is still keeping the faith.
