Tesla Recalls More Than 362,000 Cars Due to Self-Driving Crash Risk

A Tesla Model 3 vehicle on an auto carrier
A Tesla Model 3 vehicle on an auto carrier in front of a store in Rocklin, Calif. (David Paul Morris/Bloomberg News)

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Tesla Inc. is recalling 362,758 vehicles due to a crash risk associated with its so-called Full Self-Driving Beta software, according to U.S. authorities.

The system “may allow the vehicle to act unsafe around intersections,” including traveling straight through an intersection from a turn lane and proceeding through steady-yellow traffic lights, according to a Feb. 16 filing. Tesla is expected to fix the issue through an over-the-air software update by April 15, the National Highway Traffic Safety Administration said.

The system’s errors “could increase the risk of a collision if the driver does not intervene,” the NHTSA said.

The shares turned negative after the recall notice, falling 1.1% at 12:59 p.m. in New York.

The agency said it first notified Tesla on Jan. 25 that it had identified “potential concerns related to certain operational characteristics of FSD Beta in four specific roadway environments” and requested that the automaker file a recall.

Tesla met with the agency multiple times in the following days. The company did not concur with the agency’s analysis, but decided on Feb. 7 to move forward with the recall “out of an abundance of caution,” according to NHTSA.

Tesla identified 18 warranty claims between May 2019 and September 2022 that “may be related” to the conditions NHTSA was concerned about, but told the agency it is not aware of any injuries or deaths related to the defect.

Representatives of Tesla didn’t immediately respond to requests for comment from Bloomberg.

With assistance from Dana Hull.

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