U.S. regulators have granted Tesla (TSLA.US) a five-week extension to begin its investigation into vehicle defects related to traffic law violations when the Full Self-Driving (FSD) system is engaged. Tesla submitted a request to the National Highway Traffic Safety Administration (NHTSA) this week to extend the deadline for the investigation. NHTSA is probing a series of functions within Tesla's FSD system. The agency initiated the investigation last October, citing dozens of instances where Tesla vehicles ran red lights, traveled the wrong way, or experienced other malfunctions.
Last month, NHTSA sent an information request to Tesla, demanding the company provide data on the number of consumer complaints, field reports, property damage claims, arbitration proceedings, or lawsuits related to the alleged defects. On January 12, Tesla informed the regulator that it needed more time to identify traffic violation reports potentially relevant to the investigation. According to documents Tesla filed with NHTSA, as of today, 8,313 records still require manual review. The company estimates it can process approximately 300 records per day and needs to respond by February 23.
For Tesla, the proficiency of its FSD system is becoming increasingly critical. CEO Elon Musk is banking on the system to boost market demand, following a consecutive decline in the company's annual vehicle deliveries. Despite Musk's frequent boasts about the effectiveness of Tesla's autonomous driving features, the state of California has accused the company of overstating its vehicles' capabilities and threatened a 30-day sales suspension, a penalty that could take effect early this year.
Beyond investigating traffic safety violations with FSD engaged, NHTSA is also examining the ability of Tesla vehicles to detect and properly respond to sun glare, fog, and other low-visibility conditions. This separate probe was launched in October 2024 following several incidents, one of which was fatal. In its extension request submitted this week, Tesla complained to NHTSA about a pile-up of regulatory inquiries. In addition to NHTSA's questions on FSD and traffic violations, the company is simultaneously preparing responses to investigations into delayed accident reports and malfunctioning door handles.
Tesla told the regulator that responding to three large information requests within a short timeframe is "overwhelming and compromises the quality of the responses."
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