To fix problems with how it ignores posted speed limits and behaves around street intersections.
The National Highway Traffic Safety Administration (NHTSA) said the Tesla software allows a vehicle to "exceed speed limits or travel through intersections unlawfully or unpredictably increases the risk of a crash.
Tesla's recall covers some 2016-2023 Model S and Model X vehicles, as well as 2013 through 2017 Model 3s and 2020l through 2023 Model Y vehicles. The recall came after U.S. safety regulators expressed concerns about how Tesla's system responds in four areas along roads.
The National Highway Traffic Safety Administration said Thursday that Tesla would address the concerns with an online software update in the coming weeks.
Tesla disagreed with NHTSA's analysis but ultimately acquiesced to the safety agency's January request. The electric vehicle manufacturer has previously clashed with NHTSA, which has several pending Tesla probes, over other safety issues and recall demands.
Tesla, whose shares were down 5.7% at $202.04, will release an over-the-air (OTA) software update free of charge. The EV maker said it is not aware of any injuries or deaths that may be related to the recall issue. The automaker said it had 18 warranty claims.
While Tesla's Autopilot feature assists with steering, accelerating, and braking for other vehicles and pedestrians within its lane, the company says FSD is a more advanced system “designed to provide more active guidance and assisted driving” under the active supervision of the driver.
The National Highway Traffic Safety Administration (NHTSA) has reported that Tesla's Full Self-Driving (FSD) system, which is currently undergoing testing on public roads by up to 400,000 Tesla vehicle owners, has exhibited unsafe behavior. Such behavior includes driving straight through an intersection while occupying a turn-only lane, failing to come to a complete stop at stop signs, and disregarding yellow traffic lights without proper caution.
The NHTSA further highlighted that the FSD beta software, which facilitates actions like exceeding speed limits and navigating intersections in a non-compliant or unpredictable manner, significantly elevates the risk of an accident.