Did Tesla's Software Update Fix Autosteer Problems For 2M Cars? NHTSA Starts Probing (UPDATED)

Editor’s note: This story was updated with background and context for the NHTSA’s investigation.

The U.S. auto safety regulator has initiated an investigation into Tesla Inc.’s (NASDAQ:TSLA) proposed remedy for the recall of over 2 million vehicles issued in December.

What Happened: In December, Tesla recalled 2.03 million vehicles — its largest ever — equipped with all versions of Autosteer, citing insufficient controls to prevent misuse. The company announced it would address the issue through a software update.

However, concerns arose following post-remedy crash events and preliminary tests conducted by the National Highway Traffic Safety Administration’s Office of Defects Investigation. Consequently, the agency has launched a “recall query investigation.”

Why It Matters: The recall, affecting Tesla’s high-end models S and X, as well as the lower-end Model 3 and Y vehicles manufactured between 2012 and 2023, stemmed from an NHTSA investigation initiated in August 2021. 

The investigation was prompted by eleven incidents involving stationary first-responder vehicles and Tesla cars with Autosteer enabled.

Despite not concurring with the agency’s analysis, Tesla opted to recall the vehicles to resolve the investigation.

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