Tesla Inc.’s ambitious push into autonomous driving technology has hit another major roadblock, as federal regulators intensify scrutiny over its Full Self-Driving (FSD) system. The National Highway Traffic Safety Administration (NHTSA) announced a probe into nearly 2.9 million Tesla vehicles equipped with FSD, following reports of dozens of incidents where cars allegedly violated traffic laws, including running red lights and driving on the wrong side of the road. This investigation, detailed in filings this week, underscores growing concerns about the reliability of Tesla’s software, which CEO Elon Musk has long touted as a cornerstone of the company’s future.

The probe stems from 58 incident reports, some involving crashes that endangered drivers and pedestrians. According to Digital Trends, over 2.9 million vehicles are now under review for these self-driving system lapses, highlighting a pattern of erratic behavior that has alarmed safety advocates and industry watchers alike.

Escalating Regulatory Pressure on Autonomous Tech

Industry insiders note that this isn’t Tesla’s first tangle with regulators over FSD. Previous investigations have examined fatal crashes linked to the company’s Autopilot feature, but this latest inquiry focuses specifically on FSD’s propensity for basic traffic infractions. Sources familiar with the matter say the NHTSA is evaluating whether software updates have adequately addressed these flaws, or if deeper systemic issues persist in Tesla’s AI-driven approach.

Musk has repeatedly boasted about FSD’s capabilities, promising that it could enable robotaxi services and transform Tesla’s business model. However, reports from AP News detail incidents where vehicles in FSD mode crashed into other cars after ignoring signals, sometimes resulting in injuries. This has raised questions about the readiness of such technology for widespread deployment.

Implications for Tesla’s Robotaxi Ambitions

For Tesla, the stakes are high. The company is betting heavily on autonomous vehicles to drive future revenue, with Musk unveiling plans for a dedicated robotaxi fleet. Yet, as PBS News reports, the probe covers essentially all Teslas with FSD, spanning models from 2016 onward, and could lead to recalls or mandatory software fixes that delay these initiatives.

Critics argue that Tesla’s beta-testing approach—relying on real-world data from customer vehicles—exposes the public to undue risks. Data from the investigation, as covered by Reuters, includes over 50 reports of violations like illegal lane changes and failure to yield, prompting calls for stricter oversight of self-driving tech.

Broader Industry Ramifications and Safety Debates

This development comes amid a broader reckoning in the autonomous vehicle sector, where competitors like Waymo and Cruise have faced their own regulatory hurdles. Tesla’s case, however, stands out due to the sheer volume of deployed systems and the company’s aggressive marketing of FSD as “full self-driving,” despite disclaimers that it requires human supervision.

Analysts predict that if the NHTSA finds persistent safety gaps, it could force Tesla to scale back FSD features or invest billions more in refinements. As The Washington Post notes, reports of vehicles entering opposing lanes have fueled debates on whether current AI models can truly handle complex urban environments without human intervention.

Looking Ahead: Potential Outcomes and Tesla’s Response

Tesla has yet to publicly comment on the probe’s specifics, but past responses have emphasized ongoing improvements via over-the-air updates. Insiders suggest the company may argue that these incidents represent edge cases in an otherwise advancing technology, though mounting evidence from sources like CBS News—citing dangerous signal violations—could complicate that narrative.

Ultimately, this investigation could reshape Tesla’s trajectory, pressuring Musk to balance innovation with safety imperatives. With robotaxi unveilings on the horizon, any adverse findings might not only dent consumer confidence but also invite further global scrutiny, as regulators worldwide watch how the U.S. handles this high-profile case. For now, the probe serves as a stark reminder that the path to truly autonomous driving remains fraught with challenges, demanding rigorous validation beyond bold promises.