Tesla is recalling 362,758 electric vehicles equipped with its Full Self-Driving (FSD) driver assistance system because the system could cause a collision.

Despite the name, Full Self-Driving does not achieve autonomous driving. According to the recall document from the National Highway Traffic Safety Administration (NHTSA), the system is still considered by Tesla to be in a “Beta” development stage and in some cases may behave in ways that are unacceptable to human drivers.

NHTSA said in a statement that after analysis and testing, the system’s Autosteer on City Streets feature “presents an unreasonable risk to motor vehicle safety due to insufficient compliance with traffic safety laws.”

2023 Tesla Model 3

Tesla initiated the voluntary recall “out of an abundance of caution” following discussions with the National Highway Traffic Safety Administration (NHTSA). Affected vehicles include 2016-2023 Model S and Model X, 2017-2023 Model 3, and 2020-2023 Model Y vehicles equipped with or pending installation of FSD.

The test is part of an ongoing investigation beginning June 8, 2022, in response to multiple incidents of Tesla vehicles operating on Autopilot hitting emergency vehicles parked on the side of the road or on the side of the road event. Autopilot is Tesla’s basic driver assistance system; FSD adds features like automatic overtaking to that.

2023 Tesla Model Y - Courtesy of Tesla, Inc.

2023 Tesla Model Y – Courtesy of Tesla, Inc.

Tesla also touts FSD as being able to respond to traffic lights and stop signs, but in a recall notice posted on its website, the National Highway Traffic Safety Administration said the system could allow the vehicle to enter without coming to a complete stop. Intersection controlled by a stop sign, continue through the steady amber light “without due care,” then continue straight through the intersection from the turn-only lane. Note that Tesla previously recalled nearly 54,000 vehicles in 2022 after FSD was found not to obey stop signs.

While NHTSA’s investigation is ongoing, Tesla will have to meet its legal obligations to resolve the issues, the agency said. The automaker will release a free over-the-air (OTA) software update as a fix. While this does not require a visit to a service center, Tesla will have until April 15 to send an official notification letter.

2023 Tesla Model X - Courtesy of Tesla, Inc.

2023 Tesla Model X – Courtesy of Tesla, Inc.

The National Highway Traffic Safety Administration is investigating 41 crashes involving FSD and Autopilot that have killed 19 people, according to The New York Times. For its part, Tesla has identified a warranty claim related to the issue.

Tesla started offering FSD as a hardware package in 2016. CEO Elon Musk claimed that the software update would unlock true self-driving capabilities, when he said he hoped Tesla would be able to “do it without a single touch of the steering wheel as soon as 2017.

That never happened, though Tesla continued to offer the system in unfinished “Beta” form and gradually increased the price from $5,000 in 2016 (when it was only available to select customers) to $15,000 today.

The practice is now drawing more scrutiny from regulators. In 2021, National Transportation Safety Board (NTSB) Chairman Jennifer Homendy called the self-driving label “misleading and irresponsible,” and California has since made it illegal. Last month, Tesla was subpoenaed by the Justice Department over FSD, though the company said it was not aware of any ongoing investigations.

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