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U.S. regulators have approved a five-week extension Tesla in response to allegations that its vehicles violated traffic laws while operating in what the electric carmaker calls “full self-driving” mode.
NHTSA began investigating Tesla’s Full Self-Driving feature in October after it said it had collected dozens of reports of cars running red lights or driving the wrong way, sometimes hitting other vehicles and causing injuries.
The survey covered 2.9 million vehicles, and basically all Tesla vehicles are equipped with full self-driving technology (FSD). Critics said the name was a misnomer and allowed drivers to hand over complete control to their cars. The federal agency responsible for vehicle safety said in a letter to Tesla on December 3, 2025 that it was investigating 62 complaints, up from the 58 incidents reported in October.
Tesla, led by a billionaire CEO Elon Muskhas argued to regulators and in court cases that it has repeatedly told drivers that the system cannot drive the car on its own and must be ready to intervene regardless of who is behind the wheel. Regulators say many Tesla drivers involved in accidents say the cars failed to warn them before behaving erratically.
NHTSA said in a letter to the electric car maker on Thursday that the company now has until February 23 to respond to the government’s request for information. The original deadline was January 19, 2025.
Tesla lost its crown as the world’s best-selling electric carmaker last year due to a combination of factors, including a backlash from Elon Musk’s right-wing politics, the expiration of U.S. tax breaks for buyers and fierce competition at home and abroad that led to a second straight year of sales declines.
Tesla reported earlier this month that it would deliver 1.64 million vehicles in 2025, down 9% year-on-year. Chinese Rival BYD sold 2.26 million vehicles last year and is now the world’s largest electric car maker.
The FSD system under investigation is called grade 2. Driving assistance software requires the driver to pay full attention to the road conditions. A new version of FSD will be launched in the fall. The company is also testing a significantly upgraded version that doesn’t require driver intervention, something Musk has been promising for years.
Tesla is under pressure to succeed at FSD because its main business – selling cars – is struggling.
Still, investors are betting that Tesla and Musk can realize their ambitions to make Tesla the leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Tesla’s stock price ended 2025 up about 11%, reflecting this optimism.
Tesla shares were little changed in midday trading on Friday, at about $439 per share.