Tesla, which is the target of several regulator probes, will recall nearly 54,000 cars due to problems with its self-driving software. TSLA stock fell Tuesday.
The National Highway Traffic Safety Administration said late Monday Tesla's Full Self-Driving (Beta) software allows some models to conduct "rolling stops" allowing "the vehicle to travel through an all-way stop intersection without first coming to a stop," increasing the risk of a crash.
The NHTSA report said Tesla will perform an over-the-air (OTA) software update to disable the "rolling stop" function. The function, part of Tesla's "Assertive" mode, was released in October and was only supposed to engage if there were no vehicles, pedestrians or cyclists in the vicinity. But failure to stop at stop signs is a violation of state laws.
The recall includes 53,822 autos from the 2016-2022 Model S and Model X lines, 2017-2022 Model 3 line, and 2020-2022 Model Y line.
Tesla also issued a recall in November due to another software error that could cause the activation of the emergency brake.
Tesla Recalls Rack Up
The upscale automaker has faced a flurry of safety recalls and investigations in the last several months.
In December, the NHTSA acknowledged recalls for some Tesla Model 3 and Model S vehicles. Over 355,000 Model 3 vehicles could have their camera cable harnesses damaged by the trunk lid, and nearly 120,000 Model S vehicles have their front trunk latch misaligned.
The NHTSA opened a safety probe in August into Tesla's Autopilot system. The agency is looking into 12 crashes that involved Tesla vehicles using the advanced driver-assistance systems and emergency vehicles.
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The agency is also probing Tesla's option that allows passengers to play games on the front touch screen. And regulators have been critical of Tesla's use of nondisclosure agreements with its beta FSD test drivers.
The NHTSA called the NDAs "unacceptable" saying it relies on reports from consumers as an important source of information in evaluating potential safety defects.
Despite the recalls and investigations, Tesla last week reported strong fourth-quarter sales.
TSLA Stock Falls
Shares dipped 0.6% to 931.25 on the stock market today. Tesla stock spiked nearly 11% on Monday.
TSLA stock failed an early-January breakout attempt from a double-bottom base. The stock has since rebounded from its 200-day moving average, according to MarketSmith analysis.
Tesla's Relative Strength Rating is 83 out of a best-possible 99, while its EPS Rating is 73. With a Composite Rating of 93, Tesla currently ranks No. 1 in IBD's auto manufacturers group.
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