The National Highway Traffic Safety Administration (NHTSA) dealt a potential setback to Tesla’s (TSLA) autonomous ambitions with a new investigation into the company’s full-self driving (FSD) technology.
Specifically, NHTSA said it had opened an investigation into Tesla’s FSD software over reports of four crashes where FSD software was engaged in an “area of reduced roadway visibility conditions.” NHTSA said reduced roadway visibility was due to conditions like sun glare, fog, or airborne dust.
NHTSA said in one incident a pedestrian was struck and killed, in another crash an injury occurred when FSD was engaged in reduced visibility conditions. NHTSA’s preliminary investigation would look into whether FSD’s controls could detect and respond to reduced roadway visibility conditions—and if any other similar crashes occurred with FSD engaged, among other inquiries.
NHTSA said the investigation would cover 2.4 million Tesla EVs, which would be every vehicle with the ability to engage FSD in the US.
An investigation for Tesla with regards to visibility issues is a huge concern for Tesla. The automaker uses a vision-only based system for self-driving, which utilizes cameras as its main sensory input. Other automakers incorporate radar, LIDAR (laser) and ultrasonic (sound) sensors to detect objects and read the contours of the road.
Tesla took the vision based approach that uses machine learning and AI to process information in real-time—and make decisions based on visual information. CEO Elon Musk and Tesla believe a vision based system, with millions of Tesla vehicles on the road collecting data to train AI models, would be the fastest way to implement full-self driving capabilities.
Just last week Tesla and Musk unveiled a fully autonomous Cybercab, a robotaxi slated for around a 2026 production date, with a $30,000 price tag. The Cybercab has no pedals or steering wheel, and is intended to be used fully autonomously.
Tesla and many bullish analysts see Tesla as more than an automaker, and more of an AI and tech software company, with the biggest non-car bets being its autonomous software, and projects like the Optimus robot.
But any doubt over Tesla’s FSD software capabilities—for instance reduced functionality in low visibility conditions—is a big blow to the company’s autonomous ambitions.
This also isn’t the first investigation into Tesla’s FSD software by NHTSA. Last year following an investigation, NHTSA ordered Tesla to perform an software update “recall” of FSD designed to address inattentive drivers.
Tesla is also facing a Department of Justice investigation into whether the company and executives like Musk committed fraud by misleading investors and consumers over FSD’s capabilities.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
