American Regulators Probe Tesla Over Traffic Violations

The National Highway Traffic Safety Administration has launched an investigation into Tesla after receiving reports of 58 incidents where the company's vehicles ran red lights and committed other traffic violations while using the semi-autonomous driving system. The probe covers an estimated 2.9 million vehicles and includes cases where cars drove in the wrong direction while Full Self-Driving mode was active.

This investigation expands the regulatory scrutiny on Tesla's autonomous driving technology. The safety agency is looking into incidents where Tesla vehicles failed to follow basic traffic rules that human drivers are expected to obey. Some of the reported cases involved cars traveling against traffic flow, creating dangerous situations on public roads.

Tesla's Full Self-Driving system sits at the center of CEO Elon Musk's vision for fully automated vehicles. The company has been pushing these advanced technologies as part of its broader strategy to dominate the autonomous vehicle market. But the system still requires constant driver supervision during operation.

The timing creates tension with Musk's recent predictions. He has suggested that drivers in some states will soon be able to look away from the road when the system is running. These latest safety concerns raise questions about whether the technology is ready for such reduced oversight.

This probe adds to Tesla's growing list of regulatory challenges. The company already faces investigations into its door systems, autopilot features, and whether it reports accidents to authorities quickly enough. Last year, NHTSA announced it was examining how well the self-driving system can detect and respond to fog and other low-visibility conditions.

For investors and the broader auto industry, these investigations matter because autonomous driving represents a key battleground for future market share. Tesla has built much of its premium valuation on promises of breakthrough self-driving capabilities. Regulatory setbacks could slow adoption and give competitors more time to catch up.

The investigation puts Tesla in a difficult position. The company needs to prove its technology works safely while managing public expectations about what the system can actually do right now.