Tesla Faces Federal Probe Over Self-Driving Tech, Stock Dips

Tesla's stock (TSLA) declined following news of another federal safety investigation into its Full Self-Driving technology. The National Highway Traffic Safety Administration identified 58 incidents, including six crashes where Teslas ran red lights while using the software. Shares fell 1.4% in pre-market trading and closed down 0.7%.

2025 has been turbulent for Tesla investors, with the stock up just 7.5% year-to-date amid concerns about CEO Elon Musk's focus and disappointing vehicle sales. The company also faces scrutiny over Musk's proposed $1 trillion compensation package. Despite these challenges, analysts maintain Optimism about Tesla's long-term prospects in autonomous driving and robotics.

Regulatory pressures continue mounting, but prominent bull Dan Ives remains confident in Tesla's trajectory. The investigation highlights growing scrutiny of advanced driver-assistance systems as they approach wider adoption.