Red Light: Tesla (TSLA) Dips 2% on U.S. Self-Driving Safety Scrutiny
Tesla's losses increased on Thursday after investors learned of an investigation by U.S. authorities.

Quick overview
- Tesla's losses increased following news of a U.S. investigation into its Full Self-Driving features.
- The National Highway Traffic Safety Administration is reviewing safety violations related to Tesla's FSD and Autopilot systems.
- Incidents involving FSD have led to allegations of running red lights and unsafe lane changes, resulting in injuries.
- Tesla has not publicly commented on the investigation, and CEO Elon Musk has remained silent on the issue.
Tesla’s losses increased on Thursday after investors learned of an investigation by U.S. authorities. Investigators are examining Tesla’s Full Self-Driving (FSD) features for city driving, which are under review by the National Highway Traffic Safety Administration (NHTSA). Recently, the automaker released an update for the FSD.
Safety officials are investigating both FSD and Tesla’s Autopilot, which is intended for highway driving. The NHTSA described a “preliminary evaluation” of alleged traffic-safety law violations involving Teslas using FSD. These violations include driving against the proper direction of traffic on public roadways and proceeding through red traffic signals. When using FSD, Tesla requires drivers to remain fully attentive and ready to intervene if necessary.
The company plans to implement Unsupervised Full Self-Driving (FSD) technology—a system designed to operate without human intervention—in the U.S. by the end of the year. The National Highway Traffic Safety Administration (NHTSA) has reported several instances where FSD inputs resulted in safety violations, such as running red lights and making unsafe lane changes. These incidents have sometimes given drivers insufficient time to react. Allegations of running red lights have been associated with crashes, resulting in four accidents that caused injuries.
Tesla has not commented on the ongoing investigation on X (formerly known as Twitter). The company’s CEO, Elon Musk, who also owns the social media platform, has not made any posts regarding the issue either. Earlier this week, Tesla faced criticism for introducing cheaper trims of its two most popular electric vehicles, the Model 3 and Model Y, rather than launching new models. These new, lower-priced versions are priced closer to $40,000 than to $30,000, which many observers believe is the ideal price range for a mass-market electric vehicle.
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