Tesla Recalls 362,000 Vehicles For Full Self-Driving Flaws

Tesla (TSLA) is updating software on some 362,000 vehicles due to its Full Self-Driving software potentially causing crashes, the National Highway Traffic Safety Administration announced Thursday. TSLA shares dropped on the news Thursday, but not much.

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The National Highway Traffic Safety Administration reported Thursday the Tesla Full Self-Driving software allows a vehicle to “exceed speed limits or travel through intersections in an unlawful or unpredictable manner increases the risk of a crash.” NHTSA said 362,758 Tesla vehicles could potentially be affected.

The agency wrote Thursday Tesla will release an “over-the-air” software update, free of charge on “certain 2016-2023 Model S, Model X, 2017-2023 Model 3, and 2020-2023 Model Y vehicles equipped with Full Self-Driving Beta (FSD Beta) software or pending installation.”

Tesla disputes the agency’s analysis of the problem but will carry out the FSD fix, according to NHTSA documents.

Tesla stock fell 1% to 212.20 in Thursday market trading. On Wednesday, shares had advanced 2.4%. Tesla stock is up about 108% from its Jan. 6 bear market low of 101.81.

The NHTSA is conducting a wide-ranging investigation into FSD and Autopilot. The Justice Department is conducting a criminal probe over Tesla’s FSD claims. Elon Musk has claimed for years that Tesla is on the cusp of complete self-driving.

TSLA shares rank fourth in IBD’s Auto Manufacturers industry group. Tesla stock has a 71 Composite Rating out of 99. The stock also has a 24 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement. The EPS Rating is 99.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

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