Tesla Recalling 362,000 Vehicles Over Full Self-Driving Software Concerns The move follows concerns about safety and adherence to traffic laws.

By Steve Huff

Justin Sullivan | Getty Images

Tesla is recalling up to 362,000 vehicles over worries from federal agencies that the company's full self-driving mode, or FSD, may cause vehicles to exceed speed limits and travel through intersections unpredictably (and illegally), increasing accident risk. CEO Elon Musk has positioned FSD as an important Tesla AI initiative, but the company has yet to meet its self-driving goals.

As Reuters notes, the latest recall comes just two weeks before Tesla's highly anticipated March 1st investor day, shortly after the airing of a controversial Super Bowl ad that showed a Tesla flattening infant strollers and decapitating a dummy.

Tesla reported deferred revenue of $2.9 billion at the end of 2022. The income came from free supercharging programs, internet connectivity, and over-the-air software updates. In the fourth quarter of 2022, Tesla released an FSD beta version to all its eligible customers.

The National Highway Traffic Safety Administration (NHTSA) is investigating a total of 830,000 Teslas with driver assistance systems, including Autopilot, over crashes involving parked emergency vehicles. Tesla has previously faced scrutiny over its self-driving technology. In 2022, the company recalled nearly 54,000 vehicles with FSD Beta software because it could permit some models to perform illegal rolling stops. The NHTSA opened two new investigations last December into crashes involving Tesla vehicles, including an eight-vehicle crash on San Francisco's Bay Bridge.

With investor day just around the corner, all eyes will be on Elon Musk and his EV company as they navigate these latest challenges.

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Buying / Investing in Business

Big Investors Are Betting on This 'Unlisted' Stock

You can join them as an early-stage investor as this company disrupts a $1.3T market.

Science & Technology

How AI Is Turning High School Students Into the Next Generation of Entrepreneurs

As AI reshapes education, students are turning school problems into products and building the future economy.

Buying / Investing in Business

From a $120M Acquisition to a $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Leadership

My Business Hit $1 Million — Then a $46,000 Mistake Exposed the Biggest Bottleneck to Explosive Growth

How a costly mistake forced me to confront the real barrier to scaling and the changes that unlocked explosive growth beyond $1 million.