Tesla Faces Safety Probe as Self-Driving System Allegedly Ignores Traffic Signals

Tesla's stock dipped nearly 1% in early trading following news of a U.S. safety probe into its Full Self-Driving (FSD) system. The National Highway Traffic Safety Administration (NHTSA) is investigating 2.88 million vehicles after reports of traffic violations, including running red lights and incorrect lane changes.

The FSD system, designed as a driver-assistance feature requiring constant supervision, has allegedly induced behavior that breaches traffic laws. Six crash incidents have been reported where Tesla vehicles entered intersections against red signals, colliding with other cars.

Market reaction reflects growing scrutiny of autonomous driving technology, though the probe's outcome remains uncertain. Tesla's ability to address these concerns could significantly impact investor confidence in both its automotive and AI ambitions.