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Elon Musk's Tesla Faces Escalating Federal Scrutiny Over "Full Self-Driving" Capabilities

  • Nishadil
  • October 10, 2025
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  • 3 minutes read
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Elon Musk's Tesla Faces Escalating Federal Scrutiny Over "Full Self-Driving" Capabilities

In a significant escalation of regulatory oversight, federal authorities have officially launched a major new investigation into Tesla's much-hyped "Full Self-Driving" (FSD) system. This comprehensive probe, initiated by the National Highway Traffic Safety Administration (NHTSA), casts a harsh spotlight on the safety claims and real-world performance of the advanced driver-assistance technology that has been aggressively rolled out to hundreds of thousands of Tesla owners.

For years, Tesla and its charismatic CEO, Elon Musk, have been at the forefront of promising a future of fully autonomous vehicles.

The "Full Self-Driving" moniker itself suggests a capability far beyond what current technology can reliably deliver, often leading to public confusion and potentially hazardous assumptions about the system's limitations. Despite repeated warnings that FSD requires active driver supervision, a growing number of alarming incidents involving the software have prompted regulators to take a more forceful stance.

The investigation comes on the heels of numerous reports detailing a range of malfunctions and near-misses.

These include instances of "phantom braking" – where vehicles inexplicably brake hard at high speeds for no apparent reason – as well as cars swerving into oncoming traffic, struggling with complex intersections, and failing to detect obstacles or other road users. Critics have long argued that Tesla's approach to FSD testing, largely relying on an unsupervised public beta, effectively turns its customers into uncompensated test drivers, raising ethical and safety concerns.

This federal scrutiny is not an isolated event; it builds upon previous inquiries and mounting pressure from safety advocates and even some former Tesla employees.

The core of the issue lies in the fundamental disconnect between the aspirational branding of "Full Self-Driving" and the current reality of a system that is still very much in development, requiring constant driver vigilance. Regulators are now tasked with determining if Tesla's deployment of FSD poses an unreasonable risk to public safety.

The potential ramifications of this probe are substantial.

Depending on the findings, NHTSA could demand a recall of vehicles equipped with FSD, impose significant fines, or even mandate changes to how Tesla develops, tests, and markets its driver-assistance systems. Such actions would not only impact Tesla financially but could also fundamentally reshape the public's perception of autonomous vehicle technology and set new precedents for regulatory oversight across the entire industry.

As the investigation unfolds, the tech world and automotive sector will be watching closely.

This probe serves as a stark reminder that while the pursuit of fully autonomous driving is a noble goal, it must be balanced with an unwavering commitment to safety and transparency, ensuring that innovation does not outpace responsibility.

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