Tesla Gets Extension in Self-Driving Tech Probe
US regulators have provided a five-week extension for Tesla to address allegations that its vehicles have violated traffic laws while functioning in what the electric automaker refers to as full self-driving mode. An inquiry into Tesla’s full-self driving feature commenced in October following the National Highway and Traffic Safety Administration’s announcement that it had gathered numerous reports of vehicles disregarding red lights or operating on the incorrect side of the road, occasionally resulting in collisions with other cars and leading to injuries. The investigation encompassed 2.9 million vehicles, effectively all Teslas outfitted with full self-driving technology, or FSD. Critics argue that the name is misleading, having led drivers to relinquish complete control to their vehicles.
The federal agency tasked with overseeing auto safety communicated in a letter to Tesla on December 3, 2025, that it was examining 62 complaints, an increase from the 58 reported incidents in October. Tesla, led by billionaire CEO Elon Musk, has contended to regulators and in legal proceedings that it has consistently informed drivers that the system is not capable of operating the vehicles autonomously and that those in control must be prepared to take action at any moment. Regulators report that numerous Tesla drivers involved in accidents stated the vehicles provided no warning prior to exhibiting erratic behavior. In a letter to the electric vehicle manufacturer, the NHTSA stated on Thursday that the company now has until February 23 to respond to the government’s request for information, after the initial deadline was set for January 19, 2025.
Tesla lost its title as the world’s bestselling electric vehicle maker last year due to a variety of factors, including a backlash against Elon Musk’s right-wing politics, the expiration of US tax breaks for buyers, and intense competition both domestically and internationally, which has led to a decline in sales for the second consecutive year. Tesla reported earlier this month that it delivered 1.64 million vehicles in 2025, down 9 percent from a year earlier. Chinese rival BYD, having sold 2.26 million vehicles last year, has now established itself as the world’s largest EV manufacturer. The FSD system currently under investigation is classified as Level 2 driver-assistance software, which mandates that drivers maintain full attention to the road at all times. A new version of FSD was unveiled in the fall, and the company is currently testing a significantly enhanced version that eliminates the need for driver intervention, a promise that Musk has been making for years.
Tesla faces mounting pressure to demonstrate success with FSD, as its core business of selling cars encounters difficulties. Investors remain optimistic that Tesla and Musk will fulfill their aspirations to position Tesla as a frontrunner in robotaxi services and encourage consumers to adopt humanoid robots capable of handling basic tasks in both homes and offices. In line with that optimism, Tesla’s stock concluded 2025 with an increase of around 11 percent, while Tesla shares remained largely stable in midday trading on Friday, priced at approximately USD 439 each.
